Tesla Terafab: Elon Musk’s $25 Billion Chip Factory That Could Disrupt the Semiconductor Industry

Tesla is reportedly building a $25 billion semiconductor fabrication facility called Terafab, targeting 1 million monthly wafer starts by 2030 to match TSMC's current capacity. The facility will produce logic, memory, and advanced packaging at 2nm scale, with Tesla's AI5 chip allegedly offering 3x better efficiency than Nvidia's Blackwell at 10% of the cost.