HomeMusk Orders Death, Tesla to Launch AI Chip Manufacturing Next Week
As the competition for autonomous driving computing power intensifies, Elon Musk refuses to cede control of critical components to external suppliers. On March 14, he officially announced that Terafab, a massive facility dedicated to producing Tesla’s AI chips, will begin operations in just seven days.
This decision is strategic, not impulsive. During last year’s shareholder meeting, Musk revealed that even if current suppliers operated at full capacity, they could not meet Tesla’s demand for AI chips. To establish a robust computing foundation for Full Self-Driving (FSD), constructing a manufacturing plant far exceeding the scale of a traditional “gigafactory” has become essential.
Tesla is currently finalizing its fifth-generation AI chip (AI5). While Musk confirmed that partnerships with TSMC and Samsung will continue—and even hinted at potential collaboration with Intel—the launch of Terafab signals a clear shift: Tesla is pursuing end-to-end supply chain autonomy, from design to fabrication.
Notably, reports emerged just before Terafab’s launch indicating that delays in Samsung’s 2nm process forced Tesla to postpone mass production of its next-generation AI6 chip until late 2027. Faced with external foundries falling behind schedule, Musk’s rapid move to build a self-owned factory appears to be a decisive countermeasure against supply chain vulnerabilities.
From manufacturing vehicles and rockets to now deeply entering semiconductor production, Tesla is increasingly resembling a hardcore chip company. As this massive facility breaks ground in seven days, the global landscape for automotive AI chips may undergo its most significant transformation to date.
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As the competition for autonomous driving computing power intensifies, Elon Musk refuses to cede control of critical components to external suppliers. On March 14, he officially announced that Terafab, a massive facility dedicated to producing Tesla’s AI chips, will begin operations in just seven days.
This decision is strategic, not impulsive. During last year’s shareholder meeting, Musk revealed that even if current suppliers operated at full capacity, they could not meet Tesla’s demand for AI chips. To establish a robust computing foundation for Full Self-Driving (FSD), constructing a manufacturing plant far exceeding the scale of a traditional “gigafactory” has become essential.
Tesla is currently finalizing its fifth-generation AI chip (AI5). While Musk confirmed that partnerships with TSMC and Samsung will continue—and even hinted at potential collaboration with Intel—the launch of Terafab signals a clear shift: Tesla is pursuing end-to-end supply chain autonomy, from design to fabrication.
Notably, reports emerged just before Terafab’s launch indicating that delays in Samsung’s 2nm process forced Tesla to postpone mass production of its next-generation AI6 chip until late 2027. Faced with external foundries falling behind schedule, Musk’s rapid move to build a self-owned factory appears to be a decisive countermeasure against supply chain vulnerabilities.
From manufacturing vehicles and rockets to now deeply entering semiconductor production, Tesla is increasingly resembling a hardcore chip company. As this massive facility breaks ground in seven days, the global landscape for automotive AI chips may undergo its most significant transformation to date.
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