Elon Musk announced the Terafab project on Saturday. This massive semiconductor manufacturing facility will be located near Austin, Texas. Tesla and SpaceX will operate the plant as a joint venture.
The facility will produce specialized chips for artificial intelligence, robotics, and data centers to meet internal demand. Musk aims to generate one terawatt of computing power annually.
The project addresses insufficient expansion rates at existing suppliers such as Samsung and TSMC. Terafab will manage the entire production cycle from design and manufacturing to testing.
While Musk provided no specific output timeline, the move establishes vertical integration. The plan positions these ventures to compete directly with established semiconductor giants.