Tesla Terafab Is Elon Musk's $20bn Bet On Chip Manufacturing

Elon Musk has announced that SpaceX and Tesla are building a semiconductor fab at Giga Texas — not buying chips from someone else, but making their own. The project is called TeraFab, and the ambition is enormous. Tesla and SpaceX are building TeraFab, a vertically integrated chip factory designed to handle logic, memory, and testing, all under one roof in Austin, Texas. The projected output is 100 to 200 billion AI and memory chips per year. This is classic Musk — deciding the supply chain is too slow, too expensive, or too dependent on other people, and building his own. He did it with rockets, he did it with batteries, and now he's doing it with silicon. The sceptics will point out that Tesla has zero semiconductor manufacturing experience, but that criticism has been made about every Musk factory project, and the factories keep getting built.