Musk Says His Companies May Find Better Way to Make Chips, Plans $15B Fab

On October 10, 2026, Elon Musk told customers and investors at a Tesla event outside the Austin, Texas gigafactory and during an X Takeover livestream that although he currently does not know how to make microchips, he believes his companies' expertise in building custom equipment could lead them to find a better way to manufacture chips than anyone else.

Musk noted that when visiting competitors' facilities, he saw little customized equipment, while his companies have extensive experience making such equipment, which could help improve the manufacturing process. He described chipmaking as one of the hardest things in the world and said he was not sure how long it would take, possibly years.

He also outlined plans to build a chip factory called Terafab in Grimes, Texas, through a joint venture involving Tesla, SpaceX, and Intel, with initial investment expected to exceed $15 billion.