Elon Musk, the CEO of Tesla, recently stated that his company will probably have to build a massive chip factory, which he called the "Tesla terra fab." The reason is simple – current suppliers such as TSMC and Samsung cannot meet the enormous demand for chips that Tesla needs for its artificial intelligence (AI), autonomous driving, and robotics projects. Musk mentioned that even if these suppliers produced as much as possible, it would still not be enough to meet Tesla's needs. The factory should start with a capacity of around 100,000 wafers per month and gradually expand to as many as one million, bringing it close to the largest TSMC facilities.
Interest in Working with Intel
Musk also indicated that Tesla is considering working with Intel on chip production. According to him, this could be interesting, but he emphasized that nothing has been signed yet and the talks are still at an early stage. Intel could operate as a contract manufacturer, using its foundry capacity. The question remains whether Intel's technology can meet Tesla's requirements for automotive-grade chips at the necessary scale and performance. Musk commented that it would be worth discussing, but no formal agreements currently exist.
Building such a massive chip factory is no simple undertaking. Jensen Huang, the CEO of Nvidia, warned that it is an extremely demanding task due to the complexity and high cost of semiconductor manufacturing. Tesla would have to overcome technical obstacles such as ensuring sufficient production capacity and quality. Musk acknowledged that Tesla's demand for AI and robotics chips exceeds even the most optimistic supply scenarios from its existing partners.
Tesla AI and Robotics
Tesla is focusing on massive development in AI, including chips for autonomous vehicles, robots such as Optimus, and data centers. Musk explained that the current chip shortage is holding back these projects, making it necessary to find an in-house solution. For example, the factory's capacity should reach a level that would rival the largest players in the market. Tesla faces growing competition in the AI sector as well as other industries and needs to ensure a stable supply of components.
According to available information, Musk mentioned the factory plans in public statements, emphasizing that Tesla would need a "gigantic chip fab" due to colossal demand. Working with Intel could help reduce AI costs by as much as 90%, but this remains speculation without official confirmation. Industry experts note that building such a facility would require enormous investment, but it could give Tesla greater independence from external suppliers. All these plans are still at an early stage, with no specific timelines or contracts.
Source: theinformation.com
