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CEO Elon Musk Plans ‘Gigantic’ Chip Fab To Boost Tesla Output

CEO Elon Musk Plans ‘Gigantic Chip Fab’ To Boost Tesla Output

Tesla CEO Elon Musk says chip shortages are limiting vehicle and robot production, proposes building massive in-house semiconductor factories.

Elon Musk announced plans to build an enormous semiconductor manufacturing facility, aiming to secure the chips needed for Tesla’s ambitious electric vehicle and robotics projects.

Speaking at Tesla’s annual shareholders meeting on Thursday November 6, 2025, Musk described chip availability as a “limiting factor” for the company’s next-generation vehicles, including the driverless Cybercab, and the Optimus humanoid robot. Despite buying all available chips from major contract manufacturers like TSMC and Samsung, Musk said current supply cannot meet Tesla’s growing demand.

“As …