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Musk Outsources Chip Production, Eyes One Million Monthly Output

11/9/2025

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Summary

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Elon Musk announced at Tesla's Annual Shareholder Meeting plans to outsource chip production to Intel Foundry and build an in-house facility named TeraFab.
The facility could produce up to one million chips per month to support Tesla's AI ambitions.
Jensen Huang, CEO of Nvidia, cautioned that replicating Taiwan Semiconductor Manufacturing Company (TSMC) capabilities is extremely challenging, while Musk said more chips are needed and hinted at talks with Intel.

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Story summary

Elon Musk announced at Tesla's Annual Shareholder Meeting plans to outsource chip production to Intel Foundry and build an in-house facility named TeraFab.
The facility could produce up to one million chips per month to support Tesla's AI ambitions.
Jensen Huang, CEO of Nvidia, cautioned that replicating Taiwan Semiconductor Manufacturing Company (TSMC) capabilities is extremely challenging, while Musk said more chips are needed and hinted at talks with Intel.