On October 13, 2026, Tesla CEO Elon Musk announced plans to establish a Terafab chip development factory at the company’s Texas Gigafactory. The facility is intended to produce and test approximately 10 chip designs annually.
Tesla aims to shorten the traditional two-year timeline from research and development to mass production. Musk said the project would challenge the chip industry’s risk-averse mindset by pursuing high-risk, high-reward projects.
The initiative is a strategic step toward greater control over Tesla’s chip production. By bringing manufacturing, testing, and packaging in-house, the company aims to create continuous development cycles.
The project comes as the auto and technology industries increasingly rely on advanced semiconductors for electric vehicles, autonomous driving, and artificial intelligence.