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Elon Musk to Build Tesla Memory Chip Fab
16 Feb
Summary
- Tech leaders warn of a critical DRAM shortage affecting production.
- iPhone margins could be compressed due to the memory chip scarcity.
- Tesla plans a 'TeraFab' facility for domestic semiconductor manufacturing.
As of February 2026, a severe shortage of Dynamic Random Access Memory (DRAM) is causing significant concern among tech industry leaders. This essential component underpins most modern technology, and its scarcity is projected to hinder production significantly.
Industry experts, including Apple's CEO, have cautioned that the DRAM shortage could compress profit margins for popular devices like the iPhone. Micron Technology has described the current situation as an "unprecedented" blockage in the supply chain.
In a proactive move, Elon Musk revealed Tesla's intention to construct a 'TeraFab' facility. This large-scale plant aims to domestically manufacture semiconductors, including logic, memory, and packaging, addressing potential supply constraints within the next three to four years.
