Musk Says Tesla, SpaceX, xAI Chip Project to Kick Off in Texas

March 22, 2026, 4:50 AM UTC

Elon Musk said his Terafab project — a grand plan to eventually manufacture his own chips for robotics, artificial intelligence and space data centers — will be built in Austin and jointly run by Tesla and SpaceX.

Musk, the chief executive officer of both companies, said he will start off with an “advanced technology fab” in Austin that will have all of the equipment necessary to make chips of any kind, and test them. Musk, who has no background in semiconductor production and a history of over-promising on goals and timelines, had said before that the company will start ...

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