Tesla (TSLA) CEO Elon Musk announced on Saturday that a project that enables in-house production of semiconductors for Tesla (TSLA) will be launched in a week.
In an X post, the billionaire investor wrote that the project named Terafab “launches in 7 days,” signaling the beginning of a massive undertaking that could cost billions of dollars but could ease supply constraints for the company and help it face potential geopolitical risks.
In January, Musk suggested that Tesla’s (TSLA) existing chip suppliers, Samsung Electronics (SSNLF), Micron Technology (MU), and Taiwan Semiconductor Manufacturing (TSM), cannot supply the EV maker at the levels it needs.
“In order to remove the probable constraint in three or four years, we are going to have to build a Tesla TeraFab.” Musk said during the company’s earnings call, adding, “A very big fab that includes logic, memory, and packaging, domestically.”
“That’s going to be very important to ensure we are protected against geopolitical risks,” he said. “I think people maybe are underweighting some of the geopolitical risks that are going to be a major factor in a few years.”