Elon Musk announces plans to manufacture chips for SpaceX and Tesla

Terafab announced plans to build a chip manufacturing facility called 'Terafab', musk announced the plan publicly on X and at an Austin event.

Terafab location said Terafab will be built near Tesla headquarters in Austin, Texas, the facility will be built near Tesla’s headquarters in Austin, Texas, according to Bloomberg and Musk.

Terafab said Terafab will comprise two fabs, each making a single chip design, musk described Terafab as two fabs each producing one chip design.

Chip types specified two chip types: one for cars and humanoid robots and one for space data centres, musk said one chip type is for cars and humanoid robots; another is for space data centres used by SpaceX and xAI.

Chip industry supply said existing chip manufacturing does not supply chips fast enough for his projects, musk said the existing industry is not supplying chips quickly enough for his projects.