Austin, TX – Elon Musk, CEO of SpaceX and Tesla, is stepping up to address the global chip shortage by building two advanced chip factories in Austin, Texas, called “Terafab”. Musk says that the current global chip production meets only 3% of his companies’ future needs.
The Purpose of the Terafab Factories
The two factories will serve different purposes:
- One will produce chips for Tesla vehicles and the Optimus humanoid robots.
- The other will focus on specialized chips for AI satellites used in space.
Together, these factories aim to produce one terawatt of computing capacity per year — which is double the current computing capacity of the entire United States.
Musk’s Bold Vision
Musk expressed gratitude towards current chip suppliers like Samsung, TSMC, and Micron, but he warned that demand from his companies will soon exceed the total global chip output. “We either build the Terafab or we don’t have the chips,” Musk stated during a Saturday presentation in Austin. However, he did not specify a timeline for the project.
