Elon Musk launches new chip manufacturing plant

Elon Musk has announced the launch of Terafab, a joint venture between Tesla, SpaceX, and xAI focused on semiconductor production, he stated on X.

“Goal is a trillion watts of compute/year,” Musk wrote, noting that the U.S. power grid currently produces only 0.5 TW, meaning a significant portion of the project will need to be based in space.

Tesla said that 100–200 GW of capacity is required just for the production of humanoid robots Optimus, “plus terawatts for AI satellites powered by solar panels.” According to the company, this exceeds the combined capacity of all chip manufacturers in the world today and even projected output by 2030.

“We're building TERAFAB to close the gap between today’s chip production & the future's demand – a future among the stars,” the company said.