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Musk says heโ€™s building Terafab chip plant in Austin, Texas
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Musk says heโ€™s building Terafab chip plant in Austin, Texas

Home/Technology/Musk says heโ€™s building Terafab chip plant in Austin, Texas

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 Mu

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The Verge

๐Ÿ“… Mar 22, 2026ยทโฑ 1 min readยทThe Verge โ†—
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The Verge

https://www.theverge.com/ai-artificial-intelligence/898722/musk-terafab-chip-plant
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Elon Musk looking confused over a bunch of question marks.
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 โ€ฆ

Read the full story at The Verge.

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๐Ÿ“… Mar 22, 2026

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