Elon Musk, the American entrepreneur and founder of Tesla, SpaceX, and xAI, has announced the launch of a large-scale project called Terafab, which involves the construction of the world’s largest chip manufacturing plant. The new factory is planned to be built in Austin, Texas, where Tesla’s headquarters is already located.
This is reported by Finway
Terafab — A Joint Project for the Future of Technology
Musk announced the initiative during a live stream on his social media platform X. According to him, the implementation of the Terafab project will be the next step towards transitioning to solar energy and developing technologies that will help create a “galactic civilization.”
“We will either build Terafab, or we won’t have chips,” he said. “And we need chips, so we will build Terafab.”
Musk emphasized that the existing production capacities of suppliers do not meet the future chip needs of his companies. That is why he decided to combine the resources of three leading businesses to create a unique factory capable of providing high-tech developments in various fields.
Cost, Scale, and Purpose of the Plant
It is expected that investments in the Terafab project will reach at least $20 billion. Initially, construction will begin with the Advanced Technology Fab, which will also be located in Austin. The facility will manufacture two types of chips: one type will be used for Full Self-Driving autonomous control systems and Optimus robots, while the other, more powerful type will be designated for space programs and projects.
The publication notes that Musk has previously announced large-scale initiatives that have not always come to fruition, such as the Hyperloop project. However, this time the entrepreneur emphasizes the critical importance of in-house chip production for the further development of his companies.
Additionally, Musk has previously reported a shift in strategic direction for SpaceX: the company will now focus on creating a “self-sustaining city” not on Mars, but on the Moon.