Elon Musk reveals Tesla's TeraFab project, a massive chip factory aiming for technological independence and 2nm process chips, addressing supply shortages.
© Elon Musk / x.com/elonmusk
Elon Musk has announced the launch of a new Tesla project in semiconductor manufacturing. He stated that in just seven days, the company will officially begin implementing an initiative to build its own massive chip factory, called TeraFab. The entrepreneur shared this on social network X, noting that the project will be a crucial step toward technological independence for the company.
The idea of building its own chip production has been under discussion at Tesla for some time. During a conference on fourth-quarter 2025 financial results, Musk warned that chip shortages could become a significant constraint on the company's growth over the next three to four years. He mentioned that even major suppliers like TSMC, Samsung, and Micron may not fully meet Tesla's future needs for computing components.
The TeraFab project involves creating a facility that integrates multiple stages of semiconductor production. The plan is to house logic chip lines, memory manufacturing, and advanced packaging sections all in one complex. This approach aims to provide a full cycle for making modern processors and reduce the company's reliance on external suppliers and geopolitical risks.
Previously, Musk also stated that the future factory will be capable of producing chips using a 2-nanometer process. Moreover, he questioned the traditional cleanroom standards used in the semiconductor industry and even joked that at the Tesla plant, one could eat burgers and smoke a cigar without disrupting the production process.