- Updated: March 22, 2026
- 3 min read
Elon Musk Announces Terafab Chip Manufacturing Initiative for SpaceX and Tesla
In Brief Posted: 9:20 AM PDT · March 22, 2026 Image Credits:ROBIN LEGRAND/AFP / Getty Images Anthony Ha 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.Bloomberg reports 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.” 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.” The 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 said. He did not offer a timeline for these plans.As Bloomberg noted, Musk does not have a background in semiconductor manufacturing, but he does have a history of overpromising on goals and timelines. Topics AI, Hardware June 9 Boston, MA Actively scaling? Fundraising? Planning your next launch?TechCrunch Founder Summit 2026 delivers tactical playbooks and direct access to 1,000+ founders and investors who are building, backing, and closing.REGISTER NOW Newsletters See More Subscribe for the industry’s biggest tech news TechCrunch Daily News Every weekday and Sunday, you can get the best of TechCrunch’s coverage. TechCrunch Mobility TechCrunch Mobility is your destination for transportation news and insight. Startups Weekly Startups are the core of TechCrunch, so get our best coverage delivered weekly. StrictlyVC Provides movers and shakers with the info they need to start their day. No newsletters selected.Subscribe By submitting your email, you agree to our Terms and Privacy Notice. Related Transportation TechCrunch Mobility: Uber everywhere, all at once Kirsten Korosec 16 minutes ago Hardware An exclusive tour of Amazon’s Trainium lab, the chip that’s won over Anthropic, OpenAI, even Apple Julie Bort 4 hours ago AI Are AI tokens the new signing bonus or just a cost of doing business?Connie Loizos 10 hours ago Latest in AI In Brief Elon Musk unveils chip manufacturing plans for SpaceX and Tesla Anthony Ha 42 seconds ago Startups Delve accused of misleading customers with ‘fake compliance’ Anthony Ha 2 hours ago Hardware An exclusive tour of Amazon’s Trainium lab, the chip that’s won over Anthropic, OpenAI, even Apple Julie Bort 4 hours ago
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