Elon Musk revealed ambitious plans for a joint Tesla and SpaceX semiconductor fabrication facility “Terafab,” aiming to produce custom chips. The project is intended to support artificial intelligence, humanoid robotics, autonomous vehicles and space-based computing.

He stated he’s pursuing this project because semiconductor manufacturers are not producing chips fast enough to meet his companies’ AI and robotics demands. Musk said:

“We either build the Terafab or we don’t have the chips, and we need the chips, so we build the Terafab.”

According to Bloomberg Musk shared his plans during an event in downtown Austin, Texas, with a photo indicating that the “Terafab” facility will be “gigafactory,” located near Tesla’s Austin headquarters.

He also added that the aim is to produce chips capable of supporting 100–200 gigawatts of computing power annually on Earth, as well as one terawatt in space. He did not provide a timeline for the plan.

Image: Presentation of the Terafab project