SpaceX's Next Big Business Isn't Rockets. It's Computer Chips.

The article argues that SpaceX’s emerging Terafab semiconductor venture could become a major new business line, but it remains highly speculative. Terafab, unveiled in March 2026, is a planned chip-fabrication effort with Intel contributing manufacturing technology. The project’s initial investment is estimated at $55 billion, with total build-out costs potentially reaching $119 billion. A key strategic angle is that much of the output is intended for AI data centers in orbit, leveraging SpaceX’s core launch capabilities. However, the piece emphasizes that this is still a plan, not revenue, and that SpaceX’s current financial engine remains Starlink, which accounted for 61% of 2025 revenue and had more than 10 million subscribers as of March 31. The takeaway for investors is cautious: Terafab offers upside optionality, but the stock’s valuation already reflects substantial optimism and the chip project is years from contributing meaningful revenue.