<p id="speakable-summary" class="wp-block-paragraph">Elon Musk recently outlined ambitious plans for a chip-building collaboration between his companies Tesla and SpaceX.</p>
<p class="wp-block-paragraph"><a href="https://www.bloomberg.com/news/articles/2026-03-22/elon-musk-says-tesla-xai-spacex-terafab-to-start-in-austin" target="_blank" rel="noreferrer noopener nofollow">Bloomberg reports</a> that Musk shared his plans on Saturday night at an event in downtown Austin, Texas, with a photo suggesting that what Musk is calling the “Terafab” facility will be built near Tesla’s Austin headquarters and “gigafactory.”</p>
<p class="wp-block-paragraph">Musk said he’s pursuing this project because semiconductor manufacturers aren’t making chips quickly enough for his companies’ artificial intelligence and robotics needs: “We either build the Terafab or we don’t have the chips, and we need the chips, so we build the Terafab.”</p>
<p class="wp-block-paragraph">The goal is to manufacture chips that can support 100 to 200 gigawatts of computing power per year on Earth, along with <a href="https://techcrunch.com/2026/02/05/elon-musk-is-getting-serious-about-orbital-data-centers/">a terawatt in space</a>, Musk said. He did not offer a timeline for these plans.</p>
<p class="wp-block-paragraph">As Bloomberg noted, Musk does not have a background in semiconductor manufacturing, but he does have a history of <a href="https://techcrunch.com/2025/09/06/musks-1t-pay-package-is-full-of-watered-down-versions-of-his-own-broken-promises/">overpromising</a> on <a href="https://techcrunch.com/2025/09/02/tesla-dojo-the-rise-and-fall-of-elon-musks-ai-supercomputer/">goals</a> and <a href="https://techcrunch.com/2025/11/01/elon-musk-wants-you-to-know-that-sam-altman-got-a-refund-for-his-tesla-roadster/">timelines</a>. </p>
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