Tesla CEO Elon Musk announced Saturday that the Terafab semiconductor project will launch in one week.

This domestic initiative involves building a large-scale fabrication plant for logic, memory, and packaging. The project requires billions of dollars in investment to alleviate supply constraints and mitigate geopolitical risks.

Musk previously stated that current suppliers Samsung, Micron, and TSMC cannot meet Tesla's future demand for AI chips. In-house production will secure critical components for Tesla vehicles, the robotaxi, and the Optimus robot project.