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Breaking: Elon Musk Reveals Chip Manufacturing Plans for SpaceX and Tesla - TechCrunch

created: Mar 23, 2026, 12:42 PM
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Elon Musk has announced plans for a chip manufacturing facility called 'Terafab' to support Tesla and SpaceX's AI and robotics needs. The facility is expected to be located near Tesla's Austin headquarters.

Musk shared his vision for the Terafab facility during an event in Austin, Texas, stating that current semiconductor manufacturers are unable to meet the demand for chips. The facility aims to produce chips with a computing power capacity of 100 to 200 gigawatts per year on Earth and a terawatt in space. No timeline for the project was provided.