The TeraFab project unveiled by Tesla's CEO is one of the most ambitious ventures in the semiconductor industry, and interestingly, Musk is now looking towards Taiwan for his talent base.
Tesla Is Now Looking to 'Poach' TSMC Engineers From Taiwan For Their TeraFab Project, Looking For the Top Talent
Just a few days ago, Elon Musk shared his expectations for the TeraFab project, a facility that aims to scale chip output to levels no other foundry could match. TeraFab is planned to achieve an output of up to 1TW of compute per year, with an 80-20 split between Earth and space-focused deployments. Many semiconductor experts view the TeraFab project skeptically, but Tesla's CEO appears unbothered, as UDN reports that TeraFab plans to hire engineers from Taiwan, likely igniting a "talent war" in the region.
The report notes that Tesla is approaching TSMC's engineers in Taiwan to secure their support for its mega project, and given how difficult it is to access chip talent globally, this effort could also exacerbate a talent shortage. On Tesla's official career page, there is an opening for a "Module Process Engineer" role at TeraFab, with a focus on accelerating "advanced system-on-chip (SoC) development". The job requires someone proficient in transistor technologies such as GAA and FinFET, and with over a decade of experience in foundry development.
Given the complexity of the talent TeraFab requires, it is clear that Musk intends to target the very top employees in the semiconductor space. Based on what we know about TeraFab for now, it is likely to produce 2nm-class nodes as its very first step, similar to what Rapidus has done in Japan. At the same time, the scale of chip output is unprecedented, but during the initial fab, Tesla is likely to focus on nailing yield rates and process technologies rather than chasing volume. It's also important to note that TeraFab will include advanced packaging and memory production, so the talent base the facility will require will be massive.
In a Bernstein analysis shared by Citrini's analyst Jukan, it is estimated that the TeraFab project could cost up to $5 trillion, based on the current equivalent of 1TW compute capacity. Bernstein broke down the supply chain elements of NVIDIA's Vera Rubin, Rubin Ultra, and Blackwell, and ultimately concluded that to achieve the scale TeraFab intends to get to, the investment required is estimated to be a whopping five times higher than the current valuation of the chip industry, which is shocking and intriguing at the same time.
TeraFab's hiring spree indicates that the project is underway and is being taken seriously within Tesla and its management team. The constraints involved with a fab like this would likely be clarified once Tesla and its fab team detail the project, because, as of now, TeraFab is a mere PR stunt.
About the author: Muhammad Zuhair is a hardware and technology reporter for Wccftech, specializing in the semiconductor industry and the complex interplay between technology, manufacturing, and geopolitics. His coverage focuses on the corporate strategies and technological roadmaps of industry giants like TSMC, NVIDIA, Samsung, and Intel. Zuhair's expertise lies in deconstructing complex topics such as fabrication nodes (e.g., 2nm process), the economic impact of policies like the CHIPS Act, and the strategic development of AI infrastructure from NVIDIA, AMD and Intel.
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