Musk Unveils Terafab: A Chip Factory for His Entire Empire

Elon Musk is building his own chip factory. Called Terafab, the Austin-based megaproject will produce semiconductors for robotics, artificial intelligence, and space data center applications across Musk's sprawling portfolio of companies.

Tesla and SpaceX will jointly run the operation, which aims to supply custom silicon to Tesla, xAI, and SpaceX. That means one facility feeding chips into electric vehicles, humanoid robots, AI training clusters, and orbital infrastructure.

The move signals Musk's push toward vertical integration of semiconductor supply — cutting reliance on third-party chipmakers for his most critical hardware needs. Building custom chips in-house could give his companies tighter control over performance, cost, and supply chain logistics.

Austin continues to cement itself as a hub for Musk's operations, with Tesla's headquarters and major manufacturing already rooted there.