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Wire · technology

SpaceX and Tesla's Terafab targets 2028 for volume chip production, Musk says

Published

21 October 2026

Topic

technology

◆ Sectors

Semiconductors

◆ Geography

United States

◆ Source

Read at reuters.com →

◆ Verified

Fusion42 · 21 October 2026 · Fusion42 review

Terafab, a joint venture between SpaceX and Tesla, aims for volume production of advanced AI and robotics chips by Q3 2028, targeting 1 terawatt of computing power annually. The project faces challenges in securing cutting-edge manufacturing equipment and has Intel as a key collaborator, while plans for cooperation with TSMC remain uncertain.

This Wire brief sits within Fusion42's coverage of Semiconductors, and 16 sources have reported it between 2 Oct 2026 and 22 Oct 2026.

◆ ◆ The Wire takeaway

Terafab's aggressive 2028 production goal shakes up US chip manufacturing, offering founders in AI hardware a clear timeline to prepare for new supply options. Securing advanced lithography tools remains a bottleneck you may need to navigate early.

◆ Coverage

16 sources · first reported 2 Oct 2026 · latest 22 Oct 2026

◆ Related on Wire

◆ Topics

Semiconductorschip-productionsemiconductorsai-computingterafabspaceXtesla