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flag Tesla launches Terafab AI chip project to make its own advanced chips for AI and autonomy.

flag Tesla is set to launch its Terafab AI chip manufacturing project in seven days, marking a major step toward in-house production of advanced semiconductors. flag The initiative aims to meet growing demand for AI processors used in autonomous driving, robotics, and data centers, driven by Tesla’s expanding AI ambitions. flag The company plans to produce its fifth-generation AI chip, the AI5, at the facility, which could eventually handle over 100,000 wafer starts per month. flag Elon Musk stated that current supply from partners like TSMC and Samsung won’t be sufficient, making in-house manufacturing necessary. flag The project follows the cancellation of Tesla’s Dojo chip program and reflects a strategic shift to secure control over its AI hardware supply chain.

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