Elon Musk is pressuring suppliers to speed up his plans for a $25 billion semiconductor manufacturing plant in Texas.
“Terafab” will be a joint project between Musk-owned businesses SpaceX, Tesla, and xAI to build AI-ready chips: Musk has argued that global chip production cannot meet demand, even if existing manufacturers maximize output. US chip giant Intel signed on to Terafab, and has lately caught up with other manufacturers.
Taiwan’s TSMC builds 90% of the world’s most advanced semiconductors, creating a dangerous bottleneck for global industry: The CEO of ARM Holdings told Semafor World Economy that there should be “fabs on every continent” to ensure supply-chain resiliency.