Tesla Breaks Ground on Terafab Chip Factory

[Technology Strategy] Tesla will commence construction of its massive AI chip factory, 'Terafab,' within seven days to address its computing power shortfall.

Core Strategic Shift: In-House Chip Manufacturing Becomes Essential

Elon Musk emphasized that even under the most optimistic projections of supplier capacity, it would still fall short of Tesla’s demand for hundreds of billions of chips annually. To support the iterative development of Full Self-Driving (FSD) software and mass production of the Optimus robot, Tesla must build a 'Terafactory' at a scale surpassing its traditional 'Gigafactories.'

Key Specifications: 2-Nanometer Process, Production Within Three Years

Terafab is designed to utilize a 2-nanometer process node, integrating logic, memory, and advanced packaging technologies. Through innovative cleanroom techniques, Tesla aims to shorten the construction timeline to under three years, significantly faster than the industry average of five years.

Strategic Foundation: Parallel Paths of Collaboration and In-House Development

Despite advancing its own factory, Tesla will continue to rely on TSMC and Samsung to manufacture its fifth-generation AI chip (AI5). It has not yet signed any cooperation agreement with Intel.