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Musk says he’s building Terafab chip plant in Austin, Texas
- Terrence O’Brien
- March 22, 2026 at 2:06 PM
- 5 views
Grok, how do you make chips? | Image: Laura Normand / The Verge
Elon Musk announced plans to build a Terafab plant in Austin, Texas, that will be jointly run by Tesla and SpaceX. The goal is to eventually build chips at scale for robotics, artificial intelligence, and space-based data centers for Musk's various companies.
Musk has expressed concern, as have other executives, about the chip industry's ability to keep up with demand as the AI industry has boomed. But building a chip fabrication plant is complex, requires billions of dollars, many years, and a ton of specialized equipment. And, as Bloomberg points out, Musk "has no background in semiconductor production and a history of over-promising on g …
Originally published at The Verge