EVwire brief: Elon Musk is accelerating Tesla’s semiconductor push, reportedly directing suppliers to move at “light speed” on its Terafab initiative while advancing production of its custom chips through Samsung Electronics.
Tesla and SpaceX staff have reportedly begun sourcing chipmaking equipment across the full manufacturing stack, signaling early steps toward in-house production.
In parallel, Samsung is preparing its Texas fab to produce Tesla’s AI5 and AI6 chips using 2-nanometer processes, backed by an estimated $16.5 billion order.
Compared to AI4, the AI5 chip is expected to deliver 8–10x raw compute, ~9x more memory capacity, and ~5x improved memory bandwidth (Source)
Context:
As noted in a Bloomberg report, Tesla’s Terafab effort has moved into supplier outreach, with requests sent to major semiconductor equipment companies including Applied Materials, Tokyo Electron, and Lam Research.
Teams working on the project have reportedly sought price quotes and delivery timelines for a wide range of equipment, including photomasks, substrates, etching systems, deposition tools, cleaning equipment, and testing hardware.
The outreach spans multiple stages of semiconductor manufacturing, indicating Tesla is exploring full-stack production capability rather than limited assembly or packaging. Requests have emphasized speed, with suppliers asked to return estimates within 3 days in some cases. Bloomberg’s source claimed that Elon Musk aims to proceed at “light speed” for its chip-related projects.
Samsung’s TX foundry is expected to produce Tesla’s AI5 and AI6 chips
Tesla has also approached Samsung for support on the Terafab initiative. Rather than directly participating in the project, Samsung proposed allocating additional production capacity for Tesla at its Taylor, Texas facility.
The initiative positions Tesla as a potential entrant into advanced semiconductor manufacturing, a sector currently dominated by TSMC. Intel has indicated involvement in the Terafab effort, with its CEO engaging directly with Musk during a recent visit.
The Terafab concept targets large-scale chip production for applications including autonomous vehicles, humanoid robots, artificial intelligence systems, and space technologies. The project’s long-term goal includes scaling toward 1 terawatt of annual computing capacity, significantly exceeding current industry benchmarks.
Early plans include a pilot production line targeting 3,000 wafers per month, with silicon manufacturing potentially beginning by 2029. Estimated capital requirements range from $5 trillion to $13 trillion, according to Bernstein analysts.
The Terafab is being built to produce edge inference chips for Tesla’s products and high-performance compute chips for large-scale AI workloads
Samsung Taylor fab enables near-term 2nm production pathway
As noted in a Chosun report, Samsung is preparing to bring its Taylor, Texas foundry online, with an equipment installation milestone marking the transition toward operational readiness. The facility has been under development since November 2022, representing approximately 3.5 years of construction.
The Taylor fab is expected to manufacture Tesla’s AI5 and AI6 chips using 2nm-class processes, positioning it ahead of TSMC’s U.S. production capabilities. The project gained momentum after Tesla secured a $16.5 billion order, enabling Samsung to finalize construction and begin equipment installation.
Tesla has already completed the design of its AI5 chip and is progressing toward production, with AI6 in development. Elon Musk recently shared a photo of Tesla’s AI5 chip, stating in a post on X that the chip had been taped out.
Source: Bloomberg News, The Chosun Daily
DIG DEEPER into the Tesla industry news with our dedicated TESLAWIRE page. And don’t forget to subscribe to our EV industry newsletter to join 14,000+ EV geeks.
