EPISODE · Apr 23, 2026 · 1 MIN
Musk's Terafab: A New Chip Giant
from The Daily News Now! Business
Elon Musks SpaceX Empire Expands: Terafabs Ambitious Semiconductor Venture Elon Musk is consolidating his empire under SpaceX, now including X (former Twitter) and xAI operations. The latest development is a joint venture between SpaceX and Tesla, Terafab, aiming to produce advanced semiconductors from design to testing in Texas. Terafab plans to manufacture two-nanometer chips and memory for AI gear, potentially surpassing most fabs in scale. Despite initial investment of twenty billion dollars, analysts estimate the full vision could cost five trillion dollars. TSMC, the chip industry leader, remains unfazed, as new fabs take years to build and ramp up. Intel has joined forces with Terafab to meet Tesla and SpaceXs chip demands. While Musks ambitious plans are promising, TSMCs tech edge, demand visibility, and spending power keep them ahead, likely supplying Tesla for years as Terafab works to catch up. Support the show:Get a discount at https://solipillow.com/discount/dnn. Advertise on DNN:[email protected] This is an automated, high-level news summary based on public reporting.Report issues to [email protected]. View sources & latest updates:https://sources.thednn.ai/6244eea574d9ce34
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Musk's Terafab: A New Chip Giant
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