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Musk Announces Terafab Wafer Factory in Austin: Tesla and SpaceX Join Forces to Build 'Terawatt-Scale' Chip Capacity

BroadChainBroadChain03/22/2026, 05:19 PM
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Summary

Elon Musk announced that Tesla and SpaceX will jointly build a 'Terafab' wafer factory in Austin, Te

BroadChain has learned that on March 22, during a project launch event, Musk revealed that the highly anticipated "Terafab" initiative will be established in Austin, Texas. The facility will be jointly operated by Tesla and SpaceX, with the goal of building in-house chip manufacturing capabilities to meet future computing demands for robotics, artificial intelligence, and space-based data centers.

According to the plan, Musk will build an "Advanced Technology Wafer Fab" in Austin, featuring end-to-end facilities for chip manufacturing and testing. Musk emphasized that the current global semiconductor industry is expanding far too slowly to keep up with the scale of future demand he envisions.

“Without building a terawatt-scale factory, there simply won't be enough chips,” Musk stated, adding that the project aims to achieve an annual production capacity capable of supporting one terawatt of computing power.