The $20 billion “Terafab” plant will be built near Tesla’s campus in eastern Travis County.
AUSTIN, Texas — Billionaire Elon Musk has announced plans to build a $20 billion chip plant in Austin.
Musk announced on Saturday night during a livestream on his social media platform X that the plant, called “Terafab,” will be built near Tesla’s campus and gigafactory in eastern Travis County. The long-anticipated project is a joint venture between Musk-owned properties Tesla, SpaceX and xAI.
The facility is expected to produce up to one terawatt of computing power each year, which is enough for hundreds of millions of AI chips.
The Terafab plant is expected to begin production in 2027.
Boomtown is KVUE’s series covering the explosive growth in Central Texas. For more Boomtown stories, head to KVUE.com/Boomtown.