SpaceX, Tesla to Build Advanced Chip Factories in Austin

SpaceX said the Terafab complex will be the ‘next step to becoming a galactic civilization.’

SpaceX's Starship prepares for a test flight from Starbase, Texas, on May 26, 2025. Eric Gay/AP Photo

Tech billionaire Elon Musk said on March 22 that SpaceX and Tesla will build two advanced semiconductor fabrication plants in Austin, Texas: one to power cars and humanoid robots, and another designed for artificial intelligence data centers in space.

The comments followed Musk’s announcement a day earlier ​of plans to build an advanced AI chip complex in Austin.