Elon Musk Sets Massive 2032 Chipmaking Target for Tesla, SpaceX Moz Farooque ACCA Mon, November 9, 2026 at 8:26 AM EST 2 min read TSLA +2.65% SPCX +2.32% 005930.KS +0.64% Explore stocks on Coinbase Trading disclosure Trading disclosure The above button links to Coinbase. Yahoo Finance is not a broker-dealer or investment adviser and does not offer securities or cryptocurrencies for sale or facilitate trading. Coinbase pays us for certain activity generated through this link. Prices displayed are informational.
Elon Musk is preparing an extraordinary expansion into semiconductor manufacturing, with Tesla (NASDAQ:TSLA) and SpaceX (NASDAQ:SPCX) reportedly targeting production of 1 million chip wafers per month at their planned Terafab facility by 2032. The ambitious project could give Musk's companies greater control over critical AI hardware, although industry experts are questioning whether the aggressive timeline is achievable.
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Tesla is expanding beyond electric vehicles into autonomous driving, robotics and artificial intelligence, while SpaceX develops rockets, satellites and space-based communications systems. Both businesses increasingly depend on powerful semiconductors to support their technological ambitions.
According to a November 9 Nikkei report, Terafab's planned capacity includes approximately 700,000 wafers per month for memory chips and more than 300,000 for logic chips.
To put that into perspective, its proposed memory capacity alone would rival Samsung Electronics' estimated monthly DRAM output of 650,000 to 700,000 wafers.
The facility's total production target would also be roughly 40 times the 25,000 wafers per month planned for Japan's Rapidus semiconductor plant.
Musk is targeting the second half of 2028 for the beginning of mass production.
However, reaching that milestone could prove difficult.
Terafab procurement officials reportedly traveled to Japan earlier this month to coordinate semiconductor equipment purchases and delivery schedules.
Some suppliers have been asked to deliver machinery within months, an unusually demanding schedule for an industry where building advanced fabrication facilities typically takes more than three years.
The enormous scale and compressed timeline raise questions about execution, equipment availability and funding requirements.
For Tesla investors, Terafab represents a potentially important long-term strategic investment rather than an immediate earnings catalyst.
Investors should monitor equipment orders, construction milestones, capital expenditure commitments and progress toward the 2028 production target.
A successful facility could eventually reduce dependence on external chip suppliers while supporting Tesla's autonomous driving and robotics ambitions.
However, semiconductor manufacturing requires enormous upfront spending, specialized expertise and consistently high production yields.
Delays, cost overruns or weaker-than-expected manufacturing efficiency could strain Tesla's financial resources.
The central question is whether Musk can turn an exceptionally ambitious production target into a commercially competitive semiconductor operation.
