Elon Musk says the project would be run jointly by his electric-vehicle firm, Tesla, and his rocket company, SpaceX. File picture
| Photo Credit: AP
Elon Musk announced on Saturday (March 22, 2026) a plan to make chips for artificial intelligence, robotics and data centres in space, in the latest bold project by the world’s richest person.
Solimo 2000/1000 Watts Room Heater
Adjustable thermostat • ISI certified • Ideal for small to medium rooms
📦 Featured Product Recommendation
Below is a top-recommended product you can buy on Amazon — support us by using the link below (we earn a commission at no extra cost to you).
🔗 Buy on Amazon* Shop with confidence — Amazon Affiliate Link
RR Signature WARMAXX Room Heater
Dual heating mode • Overheat protection • 5-level safety • 2 year warranty
View on AmazonBorosil 2000W Novus Electric Fan Heater
Made in India • Variable temperature • Horizontal & vertical placement
See Details on Amazon
The “Terafab”, a manufacturing facility based near Austin, Texas, will aim to produce one terawatt of computing power per year, Mr. Musk said.
A terawatt is equivalent to one trillion watts. That is slightly less than the total power generation capacity of the United States, according to an industry group.
Also Read | Elon Musk unveils joint Tesla-xAI project ‘Macrohard’, eyes software disruption
Mr. Musk said the project would be run jointly by his electric-vehicle firm Tesla and his rocket company SpaceX.
He did not disclose the initial investment. Previous US media reports have put the figure between $20 billion and $25 billion.
Mr. Musk, who has no prior experience in semiconductors, said the Terafab was necessary because Tesla and SpaceX’s demand for computing power was expected to far exceed that of global chip suppliers.
“We’re very grateful to our existing supply chain, to Samsung, TSMC, Micron, and others… but there’s a maximum rate at which they’re comfortable expanding,” Mr. Musk said.
“That rate is much less than we would like… and we need the chips, so we’re going to build the Terafab.”
An “advanced technology fab” in Austin will have the facilities to design, manufacture, test and improve each chip, Mr. Musk said.
Eventually, the project aims to make chips to support 100 to 200 gigawatts of computing power on Earth, and a terawatt in space.
Mr. Musk did not give a timeline for the Terafab’s output, and has previously promised grand results from other projects on compressed time scales.
He said the Terafab would ultimately help humanity become a “galactic civilization” capable of harnessing the resources of other planets and stars.
Published – March 22, 2026 12:47 pm IST
