Tesla Considers Building ‘Tera Fab’ to Meet Future Chip Needs

By Nitin Dahad, EETimes | November 7, 2025

An upbeat Elon Musk, with his newly approved trillion-dollar pay package, talked to a very select group of investors at the Tesla annual shareholders meeting yesterday in Austin, Texas, and told the audience he had chips on his brain and planned to build a “Tera fab” that could potentially produce a million wafer starts per month to meet chip demand for Tesla alone.

Musk said that all he could think about was chips at the moment. He also said that with his AI5 chip and the planned AI6 chip, he did not think existing suppliers (TSMC and Samsung) could meet demand. As a result, he would consider some collaboration with Intel and also building Tesla’s own “Tera fab” to meet demand for Tesla’s own products.

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