SpaceX and Tesla Joint Venture Terafab Targets Q3 2028 Volume Chip Production

Tesla and SpaceX's joint venture Terafab is targeting volume semiconductor production by the third quarter of 2028, CEO Elon Musk announced on a SpaceX conference call. The project aims to provide one terawatt per year of computing capacity for artificial intelligence and robotics. Ahead of full production, the venture plans functional tests on an initial SRAM prototype chip around May or June of next year at its Austin, Texas facility. Musk warned of timeline risks due to typical logic fab construction delays and hurdles in securing advanced manufacturing equipment from ASML, Applied Materials, and KLA.