Musk's SpaceX & Tesla Build Texas Chip Giants

SpaceX and Tesla are set to construct two major chip manufacturing facilities in Austin, Texas. CEO Elon Musk announced that these advanced plants, collectively dubbed "Terafab," will address the critical need for specialized chips.

One of the "fabs" will focus on producing chips for Tesla's electric vehicles and its burgeoning Optimus humanoid robots. The second facility is earmarked for developing high-powered chips specifically designed for AI data centers in space, requiring robust performance in harsh environments and higher operating temperatures.

Musk emphasized that current global chip production is insufficient for the projected needs of his companies. The "Terafab" aims for an ambitious annual output of one terawatt of computing capacity, a substantial increase compared to the approximately half a terawatt currently generated across the United States. While no specific timeline was provided, Musk noted the necessity of this project to secure future chip supply.