Musk: SpaceX-Tesla JV Terafab Plans Chip Mass Production in Q3 2028, Admits Timeline Is 'Extremely Challenging'
Musk disclosed that Terafab aims to mass-produce AI chips by Q3 2028 with a target of 1 terawatt annual compute, but acknowledged the timeline is extremely challenging and past promises have often missed.
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Elon Musk stated during a SpaceX conference call on Tuesday local time that Terafab, a chip manufacturing joint venture between SpaceX and Tesla, plans to achieve mass production in the third quarter of 2028. The project aims to produce 1 terawatt of computing power annually for artificial intelligence and robotics businesses. Musk admitted this timeline is "extremely challenging," saying, "I've left a large margin of error because we are not sure if we can meet it."
The planned integrated facility in Texas will handle advanced logic and memory chip manufacturing, packaging, and testing within the same campus. As an intermediate milestone, Musk revealed an internal goal to produce the first test chip using static random access memory (SRAM) circuits at the Austin R&D base around May or June next year and get it working properly. Chipmakers typically manufacture SRAM circuits first to refine their production processes.
Reports note that building a frontier logic chip fab in the United States usually takes three years or more, making Musk's schedule "almost absurdly fast." Additionally, Terafab faces difficulties procuring sufficient precision semiconductor equipment from suppliers like ASML, Applied Materials, and KLA. When asked if SpaceX had placed orders for EUV lithography tools from Dutch firm ASML, Musk did not answer directly, only thanking suppliers for accelerating deliveries. Intel announced its participation in the project in April, though specific collaboration details remain undisclosed.