Musk’s Terafab: Austin’s Bold Chip Plant to Power Robots, Rockets and Beyond

Elon Musk announced Terafab, a massive semiconductor plant to be built in Austin by xAI, SpaceX and Tesla, targeting up to 1 terawatt of output per year. The factory would create an end‑to‑end loop for chip design, masks and testing and produce two main chip types: high‑power chips for Optimus robots and EVs, and space‑grade chips designed to endure harsh space environments. Musk says Terafab aims to accelerate robotics, AI and space initiatives and envisions a future with abundant access to advanced technology and interplanetary travel.