What is Elon Musk’s new chip-making facility, Terafab, and why is he building it now?

SpaceX has filed plans for a $55 billion chipmaking site in Grimes County, Texas, advancing Elon Musk’s Terafab vision.

The multi-phase facility is designed to support semiconductor manufacturing and advanced computing for SpaceX, Tesla and xAI.

If built, it could give Musk’s companies greater control over scarce AI chips and computing capacity.

The project comes as global chip demand remains high and governments push to expand domestic semiconductor production.