【SMM New Energy News】SpaceX and Tesla Launch Terafab Project to Build Largest Chip Factory

Published: Mar 23, 2026 16:01

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SpaceX and Tesla jointly announced the Terafab project on Saturday night EST. Tesla will collaborate with SpaceX and xAI to build the largest chip manufacturing factory in history, aiming to produce 100 to 200 billion advanced 2nm chips annually. Elon Musk, founder of SpaceX and CEO of Tesla, stated that Terafab aims to produce over 1 terawatt (TW) of computing capacity per year, with about 80% designated for space and 20% for Earth. Since the annual power generation in the US is only 0.5 TW, most future computing capacity must be relocated to space.

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