Tesla Terafab: $20B AI Chip Fabrication Facility Launching March 21

Elon Musk announced the Terafab project launches March 21: a vertically integrated chip fabrication facility combining logic processing, memory, and advanced packaging under one roof. The $20B facility aims to reduce Tesla's dependence on external semiconductor suppliers for its AI training and inference workloads, including Full Self-Driving and Optimus humanoid robot development. If successful, it would make Tesla one of the few non-semiconductor companies operating its own fab.