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Tesla to build Terafab to make its own AI chips despite zero manufacturing experience

Tesla plans to pursue Terafab, a large chip factory project aimed at producing semiconductors needed for self-driving and AI. Elon Musk said the project would begin within 7 days and is reported to target a 2-nanometre process. Skepticism is growing because Tesla has no chip manufacturing experience, and its earlier 4680 battery plan fell far short of targets. Industry figures also warn advanced chipmaking requires extreme cleanroom standards and deep expertise.