The real American version of "TSMC"? Musk claims Tesla's "AI chip super factory" will start in 7 days

Tesla is taking a key step towards self-controlling its AI chip supply chain.

According to media reports on the 14th, Tesla CEO Elon Musk stated on Saturday that the AI chip wafer factory project codenamed "Terafab" will officially launch within seven days. This statement marks Tesla's transition from chip design to self-production, which is significant for its autonomous driving strategy.

Musk warned at last year's Tesla annual shareholder meeting that even in the most optimistic scenario, the chip production capacity of existing suppliers would still be insufficient to meet the company's needs, asserting that Tesla "might have to" build its own wafer factory. The imminent launch of Terafab is a direct extension of this judgment. For the market, this means that Tesla's capital expenditure focus will further shift towards hardware infrastructure, and it may also reshape the competitive landscape of the AI chip foundry market.

As of the time of publication, Tesla has not responded to media requests for comments, and details such as the project's specific scale, location, and investment amount have not been disclosed.

Supply Bottlenecks Force Self-Built Capacity

The core logic behind Musk's push for a self-built wafer factory stems from deep concerns about the capacity ceiling of external suppliers.

He clearly stated at last year's shareholder meeting: "Even if we assume the most optimistic scenario for supplier chip output, it is still far from enough." He named the envisioned factory "Terafab"—"like Gigafactory, but on a much larger scale"—and characterized it as "the only viable path" to achieve the target chip shipment volume.

Currently, the manufacturing of Tesla's AI chips relies on two major foundry giants, TSMC and South Korea's Samsung. Musk has repeatedly mentioned the possibility of collaborating with Intel, stating "maybe we will do something with Intel," but also made it clear that "we have not signed any agreements," and negotiations are still in the exploratory stage.

AI5 Chip: The Hardware Core of Autonomous Driving Ambitions

The direct goal of Tesla's self-built wafer factory is to provide mass production support for its fifth-generation AI chip (AI5).

AI5 is the core computing power carrier designed by Tesla to advance its autonomous driving ambitions, providing computational support for the entire range of autonomous driving systems, including the "Full Self-Driving" (FSD) software. Musk has previously teased about AI5 multiple times, but specific performance parameters and mass production timelines have yet to be fully disclosed.

Once Terafab is established, Tesla will achieve vertical integration from design to manufacturing in the AI chip field, which is consistent with its ongoing strategy in battery and vehicle manufacturing. In the context of the ongoing global AI computing power competition and the continued tightness of advanced process capacity, the strategic value of this layout is becoming increasingly prominent.

Although Musk has provided a clear timeline, the substantive content of the Terafab project still needs to be clarified. The construction of a wafer factory typically involves hundreds of billions of dollars in capital expenditure, multi-year construction cycles, and complex supply chain support. Whether Tesla can support this grand plan without diluting existing investments in electric vehicles and energy storage will be a focal point for investors. The project's launch in seven days may bring substantial information disclosure, and the market is watching closely