
Elon Musk announced the launch of the Terafab project for microchip production. The new facility, which will be built in Austin, Texas, will be a joint endeavor of Tesla, xAI, and SpaceX. Manufacturing will concentrate on chips for humanoid robots and space technologies.
Elon Musk officially unveiled the new undertaking for establishing the Terafab project, which will deal with microchip manufacturing.
“We express sincere gratitude to our current partners, including Samsung, TSMC, Micron, and others, and aim for a quicker scaling of their output so that we can procure every possible chip from them. However, there is a ceiling to the pace they can comfortably sustain, and their metrics are lower than our requirements. Therefore, we face a decision: either we establish Terafab, or we end up without chips. Since we need chips, we will create Terafab,” Musk stated.
The entrepreneur’s address was broadcast on Tesla’s official page on the X platform. Musk emphasized that the Terafab project will be a collaborative initiative involving his companies: Tesla, xAI, and SpaceX. The plant will be erected in Austin, Texas. The business person also added that the production will focus on two categories of chips.
“Some will be primarily utilized in Optimus humanoid robots and vehicles. We will also require high-performance chips designated for the space sector,” he remarked.