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Technology · 23 March 2026

Musk's TeraFab: How he plans to close a 98% chip gap

Musk's TeraFab: How he plans to close a 98% chip gap

Pexels / Mike van Schoonderwalt

Because current chip supplies cover only 2% of his companies' requirements, Elon Musk plans a major new facility. On Saturday night, he announced TeraFab, a joint Tesla and SpaceX venture planned for their Austin campus. This factory will uniquely produce two chip types under one roof, including edge inference chips for Tesla cars and Optimus robots.

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