Elon Musk Announces Terafab Chip Production Goal for 2028

Elon Musk announced that Terafab, a chip manufacturing joint venture between SpaceX and Tesla, aims to reach volume production by the third quarter of 2028. The project intends to produce one terawatt of computing power annually for AI and robotics at a facility in Texas that will integrate manufacturing, packaging, and testing for logic and memory chips.

Musk described the timeline as an aspiration and very aggressive, noting that a first test chip using SRAM circuits is targeted for May or June 2027 at the Austin research facility. While the venture previously held discussions with Taiwan Semiconductor Manufacturing Company, Musk stated that Terafab is committed to operating the facility itself.

Intel has expressed intent to join the project to help accelerate these goals. However, the venture faces significant challenges in acquiring essential semiconductor equipment from suppliers including ASML, Applied Materials, and KLA.