Elon Musk unveils $20 billion ‘TeraFab’ chip project to make chips, memory, and package processors all under one roof — targets a terawatt of annual compute

Elon Musk revealed the $20 billion TeraFab chip project, a joint venture between Tesla and SpaceX, to produce chips, memory, and package processors on the Tesla campus in Austin, Texas. The facility aims to address the global chip industry's slow expansion to meet demand in AI, robotics, and space computing. Musk highlighted the unique capability of the Austin fab to house all chip production processes under one roof, enabling rapid iteration. The project targets a terawatt of annual compute, with chips optimized for edge inference and space environments. Musk emphasized the need for chip suppliers to expand quickly while providing no specific timeline for TeraFab's chip production.