Musk plans dual chip factories in Texas

Elon Musk has announced plans to build two advanced semiconductor factories in Austin, Texas, aimed at meeting the growing computing demands of his companies, Tesla and SpaceX.
 

The project, named “Terafab,” will consist of two separate facilities, each dedicated to producing a single type of chip, Musk said.
 

One factory will manufacture chips for Tesla’s electric vehicles and its Optimus humanoid robots, while the other will focus on high-powered processors designed for artificial intelligence systems, including satellites operating in space.
 

Musk said the move reflects the need for greater control over chip production as demand continues to rise rapidly.

“We either build the Terafab or we don’t have the chips,” he said, noting that current global supply would be insufficient to meet future requirements.
 

The announcement also marks a deeper collaboration between Tesla and SpaceX, whose involvement in chip manufacturing had not been previously disclosed.

Musk acknowledged existing suppliers such as Samsung, TSMC and Micron but indicated that demand from his companies could eventually surpass global chip production capacity.

According to Musk, the Terafab complex could produce up to one terawatt of computing capacity annually, significantly exceeding current US output.
 

He added that chips designed for space applications would need to withstand harsher conditions, including higher operating temperatures.
 

No timeline has been provided for the project, which adds to a series of ambitious initiatives Musk has outlined in recent years.