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Musk unveils ‘Terafab’ plan to tackle chip shortage for Tesla, SpaceX

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Elon Musk has announced plans for a major chip manufacturing initiative involving Tesla and SpaceX, aimed at addressing growing semiconductor demands across his companies.

According to Bloomberg, Musk disclosed the proposal on Sunday at an event in downtown Austin, Texas, indicating that a proposed facility—dubbed “Terafab”—would be located near Tesla’s headquarters and Gigafactory in the city.

Musk said the move was driven by supply constraints, arguing that existing semiconductor manufacturers are unable to meet the scale and speed required for Tesla’s artificial intelligence systems and SpaceX’s robotics ambitions. “We either build the Terafab or we don’t have the chips,” he said.

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The project is designed to produce chips capable of supporting between 100 and 200 gigawatts of computing power annually on Earth, with an additional target of up to one terawatt in space. He did not provide a timeline for execution.

While the plan underscores Musk’s push for greater vertical integration, Bloomberg noted that he lacks direct experience in semiconductor manufacturing and has previously faced scrutiny over ambitious targets that missed projected timelines.

The post Musk unveils ‘Terafab’ plan to tackle chip shortage for Tesla, SpaceX appeared first on Latest Nigeria News | Top Stories from Ripples Nigeria.

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