Tesla Considers Building Terafab Semiconductor Facility

Tesla Inc. is considering building an in-house semiconductor fab called Terafab to avoid a looming 'chip wall', CEO Elon Musk said on a recent earnings call. The company expects first silicon samples of its AI5 chip in late 2026 and targets high-volume manufacturing in 2027, while exploring a potential Intel collaboration and noting Samsung's Texas foundry EUV tests in March 2026. The move aims to secure volumes for AI, autonomy, and robotics.