Tesla’s Terafab Chip Project Launches in 7 Days

Elon Musk announced Saturday that Tesla’s “Terafab” semiconductor manufacturing project will launch in seven days, marking a significant step toward vertical integration.

The Project

Terafab aims to produce AI-optimized chips for Tesla’s Full Self-Driving and Optimus robot projects. The company has been quietly building chip design talent for years.

Manufacturing Scale

Musk claims the facility will eventually produce millions of chips annually, reducing dependence on Nvidia and other suppliers.

Competitive Impact

If successful, Terafab would make Tesla one of the few companies designing and manufacturing its own AI silicon at scale.

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Published March 17, 2026