Musk (surname)Mǎsīkè马斯克jointly / in partnership withliánhé联合Tesla (electric vehicle company)Tèsīlā特斯拉and / together withyǔ与xAI (Musk AI startup)xAIxAIto announce / to declarexuānbù宣布to build / to constructjiànshè建设$25 billion250 yì měiyuán250亿美元semiconductor chipxīnpiàn芯片factory / manufacturing plantgōngchǎng工厂。
March 22, 2026 at 6:00 PM
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Science & TechnologyMusk Announces $25 Billion Terafab Chip Factory in Texas With Tesla and xAI
Elon Musk announced on March 22 that Tesla, SpaceX, and xAI will jointly invest over $25 billion to build a chip manufacturing facility in Texas called Terafab, producing chips for AI inference and space applications.
Elon Musk announced on March 22 that Tesla, SpaceX, and xAI will jointly build a semiconductor manufacturing facility called Terafab. The project's total investment is estimated to exceed $25 billion, with the prototype factory to first launch in Austin, Texas. Terafab plans to integrate chip design, lithography, manufacturing, chip packaging and testing and other complete production stages within one industrial park. The factory will produce two types of chip series: the first type is designed for Tesla autonomous driving, robotaxi, and Optimus humanoid robot ground-based inference chips. The second chip type is the D3 processor, specifically designed for space environment, equipped with high performance and radiation resistance capability. Musk stated that approximately 80 percent of Terafab's computing power will be used for orbital AI satellite systems, with the remaining 20 percent for ground-based use. Fifth-generation AI chips are planned for small-batch production by end of 2026 and mass production in 2027. Analysts believe this move aims to reduce Musk's companies' reliance on overseas chip suppliers and enhance US domestic semiconductor manufacturing capability.
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