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On March 22nd, Musk unveiled plans for SpaceX and Tesla to collaborate on the construction of two cutting-edge chip fabrication plants in Austin, Texas, under the ambitious project codename 'Terafab.' These facilities will specialize in manufacturing 2nm semiconductor chips, with one plant dedicated to supplying chips for automobiles and humanoid robots, and the other tailored for space AI data centers. The project's site straddles the Texas-Nevada border and will be developed in two distinct phases. Production is slated to begin in the latter half of 2027, with the entire project reaching completion by 2030. The annual production capacity is projected to range between 100 to 200 billion chips, necessitating a total investment estimated at $20 billion.
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