Tesla CEO Elon Musk has officially announced on social media that the TeraFab trillion-scale chip factory will begin operations in seven days. This ambitious wafer fab aims for an annual output of 100–200 billion chips, with the goal of surpassing Taiwan’s TSMC capacity and becoming one of the largest fabs in the world.
In a surprising twist, Musk declared that the factory will not include cleanrooms. He even joked about eating cheeseburgers and smoking cigars inside, discarding long-established semiconductor industry norms. For Musk, the motivation is clear: Tesla’s demand for chips has far outstripped supply.
With the AI boom driving global chip shortages, Tesla faces severe constraints. As autonomous driving technology spreads, Tesla’s annual demand for AI chips could reach 200 billion units, a volume that TSMC and Samsung cannot meet. Musk has long floated the idea of building Tesla’s own chip manufacturing network—both to secure custom chip supply and to reduce U.S. dependence on TSMC.
The TeraFab project is planned to support 2nm process technology, directly competing with TSMC’s cutting-edge nodes. Yet the decision to abandon cleanrooms shocked the industry. Cleanrooms are considered essential for chip yield, with TSMC investing billions annually in advanced filtration systems. Musk, however, insists current cleanroom design is flawed and vows to prove chips can be made without them.
Industry speculation suggests Tesla may partner with Intel or TSMC for technology licensing and production line setup. The timing also aligns with U.S. efforts to expand domestic semiconductor capacity amid geopolitical risks. While experts doubt the feasibility of Musk’s plan—given the immense technical barriers and costs—his track record shows he thrives on defying skepticism. In seven days, Tesla will reveal the factory’s details, leaving the world to wonder: will this be a new semiconductor legend, or a spectacular failure?
Must log in before commenting!
Sign In Sign Up