Tesla (TSLA) Stock: Terafab AI Chip Fab Set to Launch Within Days

TLDR

• Elon Musk confirmed Tesla’s Terafab chip fab project will launch within days
• Terafab is designed to produce AI chips at a scale beyond current suppliers
• The project could produce up to 200 billion AI chips annually
• Tesla is already working with TSMC and Samsung on AI chips
• Musk previously floated potential collaboration with Intel on chip manufacturing

Tesla CEO Elon Musk confirmed over the weekend that the company’s Terafab project — a massive AI chip manufacturing facility — is days away from launching. The announcement marks a major step for Tesla beyond its electric vehicle roots.

Reports from Digitimes Asia suggest the facility could target output of up to 200 billion AI chips annually. Tesla hasn’t confirmed that figure officially.

Tesla, Inc., TSLA

The chips are central to Tesla’s autonomous driving push, powering systems including Full Self-Driving software. Tesla is currently designing its fifth-generation AI chip, known internally as AI5.

Why Tesla Is Building Its Own Fab

Tesla has been working with TSMC and Samsung to produce its AI chips. But Musk has been clear that even the best-case output from those partners falls short of what Tesla needs.

Tesla did not respond to a request for comment on the project details when contacted by Reuters on March 14.

What Comes Next

Musk made the updated timeline announcement on Saturday, March 14, saying the launch was seven days away. A follow-up report from Digitimes Asia, published March 16, cited Musk as saying the launch was now five days out — consistent with the original timeline.

The Terafab project, if it launches on schedule, would represent Tesla’s first move into semiconductor manufacturing at scale. No further details on the facility’s location or initial production capacity have been officially confirmed.

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