Musk unveils chip project in Texas

Musk unveils chip project in Texas

https://www.taipeitimes.com/News/biz/archives/2026/03/23/2003854278

Publish Date: 2026-03-22 12:00:00

Source Domain: www.taipeitimes.com

AMAZING ABUNDANCE:
Elon Musk has announced plans for a new facility in Texas which would manufacture chips for Tesla and SpaceX to use in robotics and AI

Elon Musk said his Terafab project — a grand plan to eventually manufacture his own chips for robotics, artificial intelligence (AI) and space data centers — would be built in Austin and jointly run by Tesla Inc and Space Exploration Technologies Corp (SpaceX).

Musk, the chief executive officer of the two companies, said he would start off with an “advanced technology fab” in Austin that would have all of the equipment necessary to make chips of any kind.

The project would call for one day supporting 1 terawatt (TW) of computing power per year, the amount Musk expects the companies to eventually use as he ramps up his investments in AI and robotics.

Photo: AFP

The billionaire detailed some specific plans, including producing chips that can support 100 to 200 gigawatts a year of computing power on Earth, and chips that can support 1TW in space, but gave no timelines for the facility or its output.

Musk has said previously that the facility would produce 2 nanometer chips. The project is planned for an area near Tesla’s existing Austin headquarters and gigafactory, based on a photo shown during the presentation.

Many executives have expressed anxiety about a shortage of chips — particularly memory chips — during the race to build computing power for AI, but it is rare to try building them. Bringing semiconductor facilities online typically takes tens of billions dollars and requires the purchase of complex machines from multiple providers. Factories can take years to become…

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