Tesla Plans ’TeraFab’ Chip Factory to Secure AI and Autonomous Driving Future
Elon Musk announced Tesla's ambitious plan to build its own semiconductor factory, dubbed 'TeraFab,' to mitigate future chip shortages. The MOVE underscores Tesla's growing reliance on AI, robotics, and autonomous driving technologies—all heavily dependent on semiconductor supply chains.
Current suppliers like Samsung and TSMC may struggle to meet Tesla's escalating demand. The 'TeraFab' initiative represents a strategic pivot toward vertical integration, reducing dependence on external vendors while requiring significant capital investment and extended timelines.