Tesla wafer factory broke ground, with an expected annual production capacity of 100 to 200 billion chips.

On March 22, Tesla CEO Musk announced on social media that Tesla, SpaceX, and xAI have jointly started the construction of a 2-nanometer semiconductor fab in Texas, USA. The fab is expected to have an annual production capacity of 100 billion to 200 billion chips. The three-party project is called TERAFAB. Musk had mentioned during a Tesla earnings call on January 28 that Tesla needs to build its own fab to address supply bottlenecks in 3-4 years.