Tesla officially launched its Terafab project on March 21 to develop a vertically integrated AI chip fabrication facility. CEO Elon Musk initiated the project to prevent future supply-chain bottlenecks for autonomous driving and robotics. This move directly challenges established semiconductor foundries including TSMC and Samsung.
The new facility will produce logic and memory chips using a 2-nanometer process. Tesla targets an eventual annual output of 100 to 200 billion chips.
The project supports Tesla’s long-term goals for full self-driving technology and the Optimus robot. By integrating chip design and manufacturing, the company aims to secure its hardware supply and accelerate innovation cycles.