tech
March 22, 2026
Elon Musk Unveils Chip Manufacturing Plans for SpaceX and Tesla
Elon Musk recently outlined ambitious plans for a chip-building collaboration Tesla and SpaceX — but he has a history of overpromising.
TL;DR
- Elon Musk revealed plans for a chip-building collaboration between Tesla and SpaceX called "Terafab".
- The facility will be built near Tesla's Austin headquarters to meet the companies' AI and robotics chip demands.
- The goal is to manufacture chips capable of supporting 100-200 gigawatts of computing power annually on Earth and a terawatt in space.
- Musk cited the insufficient production speed of current semiconductor manufacturers as the reason for this initiative.
- Concerns exist due to Musk's limited background in semiconductor manufacturing and his history of making ambitious, often unmet, promises.
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