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Tesla (TSLA) and SpaceX appear to be laying the groundwork for something far bigger than a semiconductor project. Over the weekend, Elon Musk introduced plans for “Terafab,” a massive chip fabrication initiative in Austin, Texas.
The project brings both companies under one roof to build advanced semiconductor capacity tailored for artificial intelligence (AI), robotics, and space computing. Wedbush Securities sees more than just vertical integration here. The firm is reading this as the first real step toward a potential merger, possibly as early as 2027.