Elon Musk unveils chip manufacturing plans for SpaceX and Tesla

Elon Musk recently outlined ambitious plans for a chip-building collaboration between his companies Tesla and SpaceX. According to reports, Musk shared his plans on Saturday night at an event in downtown Austin, Texas. A photo from the event suggests that what Musk is calling the “Terafab” facility will be built near Tesla’s Austin headquarters and gigafactory.

Musk explained he is pursuing this project because semiconductor manufacturers are not making chips quickly enough for his companies’ artificial intelligence and robotics needs. He stated, “We either build the Terafab or we don’t have the chips, and we need the chips, so we build the Terafab.”

The stated goal is to manufacture chips that can support 100 to 200 gigawatts of computing power per year on Earth, along with a terawatt in space. Musk did not offer a specific timeline for these plans.

It was noted that Musk does not have a background in semiconductor manufacturing. He does, however, have a documented history of overpromising on goals and timelines for his various ventures.