Tesla and SpaceX jointly launched the Terafab chip manufacturing facility

Tesla, SpaceX, and xAI have launched the "Terafab" project in Austin, Texas, planning to invest $25 billion to build the world's largest semiconductor factory. The facility will have an annual production capacity of 1 terawatt of computing power, utilizing a 2-nanometer process, with a target monthly output of 100,000 wafers, eventually expanding to 1 million wafers, and is expected to produce 100 billion to 200 billion custom AI and storage chips annually. Musk pointed out that the existing supply chain cannot meet the demand, with 80% of the computing power to be used for AI satellites in space orbit. Although this expenditure has not yet been included in the 2026 capital budget, Tesla remains committed to breaking through capacity bottlenecks