Elon Musk is reportedly planning to invest around $120 billion in what could become the world’s largest AI chip manufacturing plant. The project is expected to be built in Texas.
The proposed factory, reportedly called “Terafab,” would produce advanced AI chips for Musk’s companies, including Tesla, SpaceX, and xAI. These chips could be used for self-driving cars, humanoid robots, AI data centers, and space technology.
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According to reports, the first phase may cost about $55 billion, while the full project could eventually reach $119–120 billion in total investment.
The factory could also help the United States reduce dependence on foreign chip manufacturers like TSMC and Samsung for advanced semiconductor production.
The main goal is to meet the rapidly growing demand for AI computing power, as Musk believes current global chip production may not be enough for future AI and robotics development.
