Elon Musk Proposes Establishing Tesla's Own Chip Manufacturing Facility in the US
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 29 2026
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Should l Buy ?
Source: aastocks
TeraFab Initiative: Tesla CEO Elon Musk announced plans to establish a "TeraFab," a large-scale chip manufacturing plant in the US, aimed at producing logic circuits, memory components, and packaging processes domestically.
Geopolitical Risk Mitigation: Musk emphasized that the creation of the TeraFab would help Tesla reduce reliance on existing suppliers like TSMC, Samsung, and Micron, thereby shielding the company from geopolitical risks associated with chip shortages.
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About the author

Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.





