Musk unveils Terafab to build 'largest chip manufacturing facility ever'
Mar 22nd 2026 · United States
Musk announced a joint Tesla, SpaceX and xAI project called Terafab in a livestream on X to build a large chip fab in Austin to supply escalating computing demands, with initial costs of at least $20 billion.
- Elon Musk announced Terafab as a joint venture between Tesla, SpaceX and xAI.
- Terafab aims to produce a terawatt of computing power per year to meet the companies' projected chip needs.
- Musk said current chip manufacturers supply about two percent of the future computing capacity his companies require.
- The project will start with an Advanced Technology Fab in Austin, Texas and is estimated to cost at least $20 billion.
- Terafab will produce two chip types for terrestrial use and a higher durability space-grade chip, and Musk has filed an FCC application for an orbital data center of satellites.