On March 21, 2026, at the historic Seaholm Power Plant in Austin, Elon Musk unveiled Terafab: a $20–25 billion semiconductor factory, the result of cooperation between Tesla, SpaceX, and xAI. The stated objective: to produce more than one terawatt of computing power per year, equivalent to nearly the entire current electric power capacity of the United States.
Eighty percent of this capacity would be dedicated to orbital data centers, powered by space-based solar energy via SpaceX launchers. The remainder would supply Tesla’s autonomous vehicles, Optimus humanoid robots, and xAI’s artificial intelligence models. Musk summed it up bluntly: “Either we build Terafab, or we won’t have the chips.”
This project marks a new stage in the vertical integration of the entrepreneur’s companies. While no formal rapprochement has been confirmed, the pooling of resources between a publicly traded company (Tesla) and a private enterprise (SpaceX) is fueling speculation about a deeper merger. Analysts such as Gary Black warn of dilution risks for Tesla shareholders and regulatory obstacles.
For Europe, which is investing heavily through the Chips Act to reduce its dependence on Asian foundries, Terafab illustrates both a threat and a strategic question. An unprecedented concentration of computing capacity in private American hands could disrupt global supply chains. Musk, for his part, presents the project as a response to Earth’s energy limits and a means of ensuring that human knowledge can survive beyond the planet.
The challenges remain immense: Tesla and SpaceX have no experience manufacturing 2-nanometer chips, the capital expenditure is colossal, and timelines remain unclear. The market reacted cautiously: Tesla’s share price barely moved.
Whether Terafab succeeds or not, one thing is clear: Musk’s ecosystem is evolving toward unprecedented industrial integration. Europe, which has always believed in large collective adventures—Airbus, Ariane, ITER—is watching this new form of private competition closely. The future will show whether it can respond.
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