Elon Musk Says Terafab Mega AI Chip Factory Will Be The Largest Ever Built

Elon Musk’s latest industrial gambit, called Terafab, aims to interrupt the semiconductor supply chain by building a massive $25 billion chip fabrication facility in Austin, Texas. As a joint venture between Tesla, SpaceX, and xAI, the ambitious project has ambitions of producing a terawatt of computing power yearly to fuel Musk’s most ambitious AI and aerospace dreams.

While big kahunas like TSMC and Samsung rely on a relatively fragmented network of specialists for design, fabrication, and packaging, Terafab intends to be a gigafactory for chips: where every stage of production happens under one roof. During an announcement event in Austin, Musk claimed that combining lithography, memory production, and advanced packaging will create "an incredibly fast recursive loop for improving chip design."

Between grandiose lead-ups about the sun's power potential and "starting a galactic civilization," Musk's plan ...