Elon Musk announced the launch of the Terafab project for the production of AI chips

Tesla has announced the launch of the Terafab project — its own production facility for artificial intelligence chips. This was reported by the company’s CEO, Elon Musk.

According to him, the project will start on March 21, 2026, and will be part of the strategy to create its own infrastructure for the development and production of AI chips.

The initiative is linked to growing demand for computing power: Musk previously noted that even with maximum deliveries from current partners, including TSMC and Samsung, Tesla would not be able to obtain the necessary volume of components.

The new factory is expected to produce chips for the company’s key products — autonomous driving systems, robotaxis, and other AI developments.

The Terafab project is also seen as a step toward Tesla’s full independence from third-party semiconductor manufacturers and strengthening control over the entire development chain — from software to hardware.

The facility is expected to become one of the largest in the industry and help the company meet its long-term need for tens of billions of AI chips annually.

Source: Reuters