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Musk's Tesla and SpaceX Launch Bold In-House Chip Manufacturing Push

Two tech titans join forces to revolutionize chipmaking. Will Musk's vertical integration gamble pay off for AI, EVs, and space tech?

The image shows a close up of a semiconductor chip on a black background. The chip is rectangular...
The image shows a close up of a semiconductor chip on a black background. The chip is rectangular in shape and has a metallic sheen. It is surrounded by a thin metal frame and has several small holes along its edges. The edges of the chip are slightly raised, indicating that it is ready to be used.

Musk's Tesla and SpaceX Launch Bold In-House Chip Manufacturing Push

Elon Musk's companies are pushing into chip manufacturing with ambitious in-house plans. Tesla and SpaceX will collaborate on the Terafab project, aiming to produce advanced semiconductors under one roof. The move includes hiring sprees and major investments to speed up innovation. Tesla has begun recruiting for Terafab, a new facility designed to handle chip production from start to finish. Job listings in California and Texas advertise roles for process engineers, process integration specialists, and manufacturing facility designers. Salaries for these positions range from $88,000 to as high as $338,280.

The project will integrate photomask manufacturing, chip fabrication, packaging, and testing in a single building. This approach aims to shorten development cycles, particularly for cutting-edge 2nm processes. Musk has stated that bringing lithography mask production in-house will allow faster design updates for both Tesla and SpaceX.

Meanwhile, SpaceX is expanding its own semiconductor operations. The company is hiring around 60 engineers for its chip division, focusing on space and terrestrial applications. A $280 million investment in its Starlink factory in Bastrop, Texas, will boost research and packaging capabilities. The goal is to reduce reliance on external suppliers and accelerate chip iteration. The collaboration between Tesla and SpaceX marks a significant shift toward self-sufficient chip production. With new hires, expanded facilities, and a focus on rapid iteration, both companies aim to strengthen their control over semiconductor technology. The first results of these efforts are expected to appear in future vehicle and space systems.

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