Tesla and SpaceX CEO, Elon Musk, announced Saturday night that his TeraFab semiconductor project will be built on the Tesla campus in eastern Travis County, Austin, Texas, as a joint venture between the two companies.
In a livestream broadcast via X, Musk stated that the facility exists because the global chip industry cannot expand quickly enough to meet his projected demand across AI, robotics, and space computing. "That rate is much less than we'd like," Musk said from the defunct Seaholm Power Plant in downtown Austin. "We either build the TeraFab, or we don't have the chips, and we need the chips, so we build the TeraFab." The project reportedly carries a $20 billion price tag.
