Mikkel Christensen
Rising pressure on global chip supplies is driving Elon Musk to consider building his own large-scale manufacturing base in Texas.
Rising pressure on global chip supplies is driving Elon Musk to consider building his own large-scale manufacturing base in Texas.
The proposal reflects growing needs across electric vehicles, robotics and space-based AI systems, as existing production struggles to keep pace.
According to The Nation Thailand, Musk revealed plans for a project called “Terafab” that would involve two specialised semiconductor factories in Austin.
The facilities would be developed by Tesla and SpaceX and designed to produce separate chip types for different uses.
He signalled that relying on current suppliers may no longer be viable. Speaking at an Austin presentation on March 21, Musk said: “We either build the Terafab or we don’t have the chips.”
Expanding needs
The Nation Thailand reported that Musk believes global semiconductor output will cover only a fraction of what his companies will eventually require, as AI and automation demands accelerate.
While he acknowledged partners such as Samsung, Taiwan Semiconductor Manufacturing Company and Micron, he suggested their combined capacity may fall short of future needs.
Musk did not outline when construction might begin. The report noted that several of his past large-scale announcements have taken longer than expected or remain incomplete.
In a post on X, he described the concept simply: “Terafab will technically be two fabs, each making only one chip design.”
Dual purpose
The planned factories would split production between two distinct technologies, according to The Nation Thailand. One would focus on chips for Tesla vehicles and its Optimus humanoid robots.
The second facility would be aimed at space-based applications, particularly artificial intelligence systems operating in orbit.
Musk said the complex could eventually deliver around one terawatt of computing capacity each year, compared with roughly half that level currently produced across the United States.
“We need a high-powered chip designed for space that takes into account the harsher environment,” Musk said, adding that the hardware must withstand higher operating temperatures.
The Nation Thailand also reported that SpaceX’s involvement marks a new element in Musk’s chip strategy, alongside its recent link-up with his AI venture xAI.
Sources: The Nation Thailand (citing Reuters)
