Tesla's $25 Billion Terafab Aims for 200 Billion AI Chips With March 21, 2026 Launch

On March 15, 2026, Tesla detailed its Terafab project, a $25 billion semiconductor plant designed to eventually manufacture up to 200 billion custom AI chips per year. The facility targets 2-nanometre process technology, with small-batch AI5 chip output in 2026 and mass production planned for 2027, while a March 21 launch date underscores both the project's ambition and its execution risks.