Musk: Chip Capacity Could Limit Tesla’s Mid-Term Growth, In-House Fab Is Essential

On January 29, IT Home reported that during Tesla’s Q4 2025 earnings call, Elon Musk stated that chip production capacity may become a bottleneck for Tesla’s mid-term growth over the next 3–4 years. Data from suppliers including TSMC, Samsung, and Micron indicate that external chip capacity cannot meet Tesla’s demand.

Musk emphasized the necessity of building an in-house TerraFab mega semiconductor fab, designed to integrate logic processes, memory semiconductors, and advanced packaging into a fully integrated advanced chip manufacturing workflow, helping Tesla mitigate external risks.

Additionally, Musk noted that AI4 (HW 4.0) is already deployed in Tesla data centers for AI training workloads, and the interval between AI5 and AI6 chips will be less than one year, highlighting the accelerated chip iteration cycle.