Musk launches Texas Terafab for Tesla, SpaceX, xAI chips

technology big tech hardware semiconductors

Elon Musk announced a new $25 billion chip fabrication plant, named Terafab, intended to manufacture up to one terawatt of computing power annually. The facility is planned to be the largest semiconductor fab ever built.

The Terafab project, a collaboration between Tesla and SpaceX, will be located in Austin, Texas. Musk stated the plant will produce chips for Tesla vehicles, SpaceX satellites, robotics, artificial intelligence, and space data centers.

Musk envisions Terafab as a key step towards establishing humanity as a “galactic civilisation”. However, observers note Musk has a history of ambitious announcements that don’t always come to fruition.

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