MediaTek could partner with Tesla’s TERAFAB, expected to produce chips by 2028

It has been reported that MediaTek (聯發科技) is the frontrunner to become a strategic ASIC partner for Tesla’s TERAFAB initiative, with production of custom chips for the automaker expected by 2028. The claim comes from an industry survey released by analyst Ming‑Chi Kuo (郭明錤) of TF International Securities and was reported by TechNode. If true, the deal would pair one of Taiwan’s largest chip designers with Tesla’s push to vertically integrate its semiconductor supply for autonomy and vehicle systems.

Deal and timeline

TERAFAB is Tesla’s ambitious “super chip” foundry concept aimed at producing application‑specific integrated circuits (ASICs) tailored to in‑house compute needs. Reportedly, MediaTek would design the ASICs while leveraging external foundries for fabrication — MediaTek itself is primarily a fabless designer best known for smartphone, IoT and automotive SoCs. The 2028 production target implies a multi‑year development and qualification cycle, including design, tape‑out and wafer sourcing, before Tesla could receive volume parts for its vehicles.

Strategic and geopolitical implications

Why would Tesla tap MediaTek rather than an established auto‑chip supplier? Vertical control over chip design and supply could speed innovation and reduce dependence on traditional suppliers. But geopolitical reality complicates the picture. Taiwan’s central role in the semiconductor supply chain, U.S. export controls on advanced process technologies, and heightened scrutiny of cross‑border technology transfers mean any partnership will face regulatory and logistical hurdles. It has been reported that these factors will influence which nodes and foundries are available for TERAFAB‑linked production — and whether the plan can meet the 2028 timeline.

Will a collaboration between Tesla and MediaTek reshape how chips are sourced in the auto industry? The proposal highlights a broader trend: automakers seeking closer control of critical silicon amid global supply‑chain strain and geopolitical friction. Only time — and regulatory reviews — will tell if TERAFAB can move from concept to factory floor with a Taiwanese partner at its side.