SpaceX and Tesla have announced a joint investment of USD 16.8 billion to construct 'Terafab,' an advanced AI semiconductor manufacturing facility in Texas.
The project is expected to create more than 3,000 jobs and aims to address growing global demand for AI chips.
The move marks a significant diversification for both companies into the semiconductor supply chain.
While Tesla has previously developed its own AI chips for autonomous driving, this venture with SpaceX represents a large-scale manufacturing commitment.
The facility will likely focus on high-performance computing components essential for artificial intelligence applications.
This development comes amid ongoing global efforts to secure domestic semiconductor production capabilities.