# Elon Musk unveils chip manufacturing plans for SpaceX and Tesla

_Friday, June 26, 2026 at 6:22 PM EDT · Tech & Business · Latest · Tier 2 — Notable_

![Elon Musk unveils chip manufacturing plans for SpaceX and Tesla — Primary](https://techcrunch.com/wp-content/uploads/2025/05/GettyImages-2207245107-1.jpg?resize=1200,765)

Elon Musk outlined plans for a chip-building collaboration between his companies Tesla and SpaceX. Bloomberg reports that Musk shared his plans on Saturday night at an event in downtown Austin, Texas.

A photo suggests that the facility, which Musk is calling the Terafab, will be built near Tesla's Austin headquarters and gigafactory. Musk said he is pursuing this project because semiconductor manufacturers are not making chips quickly enough for his companies artificial intelligence and robotics needs.

He stated that either the companies build the Terafab or they do not have the chips, and they need the chips, so they build the Terafab. The goal is to manufacture chips that can support 100 to 200 gigawatts of computing power per year on Earth, along with a terawatt in space. Musk did not offer a timeline for these plans.

As Bloomberg noted, Musk does not have a background in semiconductor manufacturing. He does have a history of overpromising on goals and timelines.

## Sources

- [TechCrunch](https://techcrunch.com/2026/03/22/elon-musk-unveils-chip-manufacturing-plans-for-spacex-and-tesla/)

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Retrieved: 2026-06-27T04:14:25.674Z
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