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Construction is seen Monday morning north of Tesla Inc.\u2019s Gigafactory Texas. CEO Elon Musk said the company and SpaceX are building the world\u2019s largest chip manufacturing plant, but clarified that this site would be reserved for a small plant aimed at chip design.\u00a0<\/p>\n
Jay Janner\/Austin American-Statesman<\/p>\n
Elon Musk says Tesla Inc.<\/a> and SpaceX<\/a>\u00a0are building the world\u2019s largest chip manufacturing plant.<\/p>\n The facility\u00a0\u2014 which he said could be more than 12 times the size of the massive Samsung chip plant in Taylor\u00a0\u2014 would build chips for artificial intelligence and the space data centers Musk has recently begun touting.<\/a>\u00a0<\/p>\n Article continues below this ad<\/p>\n Construction is seen Monday morning north of Tesla Inc.’s Gigafactory Texas. CEO Elon Musk said the company and SpaceX are building the world\u2019s largest chip manufacturing plant. A portion of the North Campus appears to be under construction, but Musk said it\u2019s intended for a small chip design facility.<\/p>\n Jay Janner\/Austin American-Statesman<\/p>\n Tesla bragged<\/a> it would be the \u201cthe largest chip manufacturing facility ever.\u201d It will produce chips to support from 100 to 200 gigawatts a year of computing power on Earth and a terawatt in space, Musk said.<\/p>\n \u201cWe\u2019re confident this is feasible. No new physics or impossible things are required to get there,\u201d Musk said during a presentation Saturday. \u201cWe\u2019re starting off with an advanced technology\u00a0fab here in Austin.\u201d<\/p>\n He made several bold claims, including that the site requires thousands of acres and would need more than 10\u00a0gigawatts\u00a0of power at full scale. He also boasted that it will make chips for Tesla to use in its vehicles and Optimus robots<\/a> and support the production of 160,000 semiconductor wafers a month.\u00a0<\/p>\n Article continues below this ad<\/p>\n Musk\u2019s companies, which have a track record of\u00a0failing to meet his ambitious\u00a0deadlines<\/a>, are far from pulling off\u00a0Terafab. No timeline\u00a0has been offered and sites are still being surveyed.\u00a0<\/p>\n Several locations are under consideration \u2014 and it won\u2019t all be at Gigafactory Texas. While a section of the massive Tesla factory’s North Campus appears to be in the first phase of construction, Musk later clarified that the site would be for a small plant dedicated to chip design.\u00a0<\/p>\n No, that\u2019s just the little advanced technology fab, where we will be iterating on chip designs. <\/p>\n We couldn\u2019t possibly fit the Terafab on the GigaTexas campus. It will be far bigger than everything else combined there. <\/p>\n Several locations for Terafab are under consideration. It\u2026<\/p>\n \u2014 Elon Musk (@elonmusk) March 22, 2026<\/a><\/p>\n \u201cWe couldn\u2019t possibly fit the\u00a0Terafab on the GigaTexas campus,\u201d Musk wrote later on X. \u201cIt will be far bigger than everything else combined there.\u201d One hundred million square feet is the \u201cright order of magnitude,\u201d he added.\u00a0<\/p>\n Article continues below this ad<\/p>\n At that size, it would dwarf the massive plant Samsung Electronics Co. Ltd. began building in 2022 in Williamson County<\/a>. By 2028, it\u2019s expected to be about 8 million square feet.<\/p>\n Gov. Greg Abbott added to Musk\u2019s fanfare. He thanked him after Saturday\u2019s event, writing on X, \u201cYour vision is powerful and we are proud of all you do in Texas.\u201d<\/p>\n Early job postings indicate at least some of the project will connect to California, the original headquarters state of both companies. Telsa is hiring for process and integration engineers in Palo Alto, with job descriptions noting the roles will ensure \u201cglobal alignment across Tesla\u2019s sister fabs\u201d and develop custom semiconductors for the company\u2019s current and future platforms.\u00a0<\/p>\n Tesla and SpaceX CEO Elon Musk says the companies, along with SpaceX subsidiary xAI, are building what will be the world\u2019s largest microchip manufacturing plant.<\/p>\n Julia Demaree Nikhinson\/Associated Press<\/p>\n Current postings show Tesla also is hiring for several roles in Austin that will tackle engineering and supply chain.\u00a0<\/p>\n Article continues below this ad<\/p>\n The announcement comes on the heels of Musk announcing SpaceX\u2019s acquisition of xAI<\/a> and a plan to launch a constellation of 1 million satellites operating as orbital data centers to support rapid growth of AI.\u00a0Experts have pointed to hurdles<\/a> with such a plan, though, including a lack of repair crews and collisions from floating debris in an increasingly crowded Earth orbit.\u00a0<\/p>\n During the presentation, Musk also displayed a rendering of a “mini” AI data center satellite that SpaceX plans to use, which he said would be larger than Starship<\/a>. The reveal comes as the company’s management and advisers are pursuing an initial public offering later this year. SpaceX is expected to raise as much as $50 billion in an IPO this summer, which could value the rocket maker at more than $1.75 trillion, Bloomberg News reported<\/a>.<\/p>\n Chipmaking peers have similarly worked on ambitious plans in recent years amid a chip shortage. In Taylor, Samsung\u2019s plant sits<\/a> on more than 1,000 acres near U.S. 79 and County Road 401. Its plans include two logic fabs and a research and development facility. In filings, the company has outlined the potential for up to 11 additional chip production facilities in the region in the coming decades.<\/p>\n Samsung\u2019s new plant near Taylor is seen in October. By 2028, it\u2019s expected to encompass about 8 million square feet. Elon Musk said a new Tesla\/SpaceX chip fabrication plant would be 12 times that.<\/p>\n Aaron E. Martinez\/Austin American-Statesman<\/p>\n<\/p>\n
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