Overview
- Musk outlined a concept for a very large U.S. facility that would integrate logic, memory, and packaging to reach the chip volumes Tesla expects for AI, autonomy, and robotics.
- Tesla’s in‑house AI5 chip is slated for first silicon samples in late 2026 with high‑volume manufacturing targeted for 2027, with Samsung’s Texas site reportedly beginning EUV testing in March 2026 to support the timeline.
- Chief Financial Officer Vaibhav Taneja said the proposed TeraFab is not included in near‑term capital spending, and key details such as funding, location, and schedule remain undecided.
- Tesla is pursuing interim measures including exploring partnerships such as with Intel, investing about $2 billion in xAI, and expanding on‑site AI training compute in Texas.
- Musk said current suppliers including TSMC, Samsung, and Micron cannot meet Tesla’s long‑term needs and pointed to geopolitical concentration risks in advanced chip manufacturing.