Tesla and SpaceX Push Forward “Terafab” AI Chip Factory in Texas

Tesla and SpaceX are reportedly advancing plans for “Terafab,” a major semiconductor facility in the Austin, Texas area. The proposed plant would produce next-generation AI chips to power autonomous systems, high-performance computing, and internal technology platforms. The move signals a deeper push into vertically integrated chip production, aiming to strengthen U.S. semiconductor capacity while supporting both companies’ rapidly growing AI and aerospace needs.