Elon Musk has outlined ambitious plans for a new chip manufacturing initiative involving his companies Tesla and SpaceX.
Speaking at an event in Austin, Musk revealed plans for a facility dubbed “Terafab,” which is expected to be located near Tesla’s headquarters and Gigafactory in the city.
Musk said the project is driven by the urgent need for more advanced chips to support artificial intelligence and robotics across his businesses. “We either build the Terafab or we don’t have the chips, and we need the chips, so we build the Terafab,” he said.
The proposed facility would aim to produce chips capable of supporting between 100 and 200 gigawatts of computing power annually on Earth, with an additional target of one terawatt of computing capacity in space. However, Musk did not provide a timeline for the project.
While the scale of the plan underscores growing demand for AI-related hardware, Musk does not have direct experience in semiconductor manufacturing and has previously faced scrutiny for overly ambitious timelines and targets.
