Elon Musk Unveils Terafab for Tesla and SpaceX Chips

Published by

Qadir AK

March 24, 2026

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Elon Musk announced that Tesla and SpaceX will jointly build an advanced chip plant in Austin, Texas. Called “Terafab,” it will include two units, one for Tesla’s AI systems and another for SpaceX’s space-based data centers. Musk said the goal is to produce one terawatt of computing power each year, about double the current US capacity. He cited supply limits from existing chip makers, adding that the project reflects the fast pace of the growing AI race.

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