Terafab is Musk’s $20–25B US chip factory — a joint venture between Tesla, SpaceX, and xAI — announced March 2026 in Austin, Texas. Goal: produce up to 200 billion AI chips per year on American soil, cutting dependence on Taiwan. First chips late 2026, volume production 2027.
ELON MUSK: “FOR THE NEXT FEW YEARS AMERICA IS LIKELY TO WIN THE RACE IN AI. THEN IT WILL BE A FUNCTION OF WHO CONTROLS THE AI CHIP FABRICATION. IF MORE OF THE FACTORIES ARE OWNED BY CHINA THEN CHINA WILL WIN."
"RIGHT NOW ALL THE CHIP FABS ARE IN TAIWAN. 100%."
"IF CHINA INVADES TAIWAN IN THE NEAR TERM THE WORLD WILL BE CUT OFF FROM ADVANCED AI CHIPS."
"I THINK IT'S ESSENTIAL FOR NATIONAL SECURITY THAT WE BEGIN MANUFACTURING OUR OWN CHIPS IN THE US.”