Elon Musk announced plans for a chip-building collaboration between Tesla and SpaceX.
The initiative, which Musk terms “Terafab,” aims to address inadequate semiconductor supply for his companies’ artificial intelligence and robotics requirements. Musk stated the project is necessary because current semiconductor manufacturers are not producing chips at the required speed.
“We either build the Terafab or we don’t have the chips, and we need the chips, so we build the Terafab,” Musk said, according to Bloomberg.
The Terafab facility is expected to be located near Tesla’s Austin, Texas headquarters and gigafactory, a photo circulating from the event suggested. The stated goal is to produce chips supporting 100 to 200 gigawatts of computing power annually for terrestrial use and a terawatt for space applications.
No timeline for these plans was provided by Musk. Bloomberg reported Musk lacks a background in semiconductor manufacturing.
