Billionaire tech entrepreneur Elon Musk has announced an ambitious new initiative in the technology sector: a chip manufacturing facility called “Terrafab,” aimed at supporting next-generation computing—including potential data centers in space.
According to Musk, the Terrafab project will be built in Austin, near the headquarters of Tesla. The facility will be jointly operated by Tesla and SpaceX.
Musk said the factory will produce two main types of chips. One category will be used in electric vehicles and humanoid robots, while the other will be designed for space-based data centers. These advanced chips are expected to power artificial intelligence systems in orbit, as part of a long-term vision to establish computing infrastructure beyond Earth.
In a post on X, Musk explained that Terrafab will function like two separate factories, each dedicated to producing a specific chip design.
The CEO of Tesla and SpaceX emphasized that current chip production levels are insufficient to meet the growing demands of his companies’ projects. Speaking in Austin, he said, “If we don’t build Terrafab, we simply won’t have enough chips. But we need chips—so we have to build it.”
Musk added that the chips being developed for terrestrial use are expected to support between 100 and 200 gigawatts of power, while those intended for space applications could handle up to 1 terawatt—indicating an unprecedented scale of computing capability.
However, no specific timeline has been announced for the project, leaving uncertainty about when Terrafab will become operational.
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