Elon Musk is making an increasingly ambitious bet on semiconductors, even as he openly admits that he currently has “no idea how to make microchips.” Speaking via livestream at the X Takeover event outside Tesla’s Gigafactory in Austin, Texas, Musk said he believes Tesla (TSLA) and SpaceX (SPCX) can eventually make chips better than established industry players by applying their expertise in building highly customized manufacturing equipment.
The comments highlight Musk’s broader vision for Terafab, the planned Texas semiconductor project being developed by Tesla and SpaceX with Intel (INTC) involved. The project is expected to require more than $15 billion in initial investment and is designed to give Musk’s companies greater control over the chips needed for Tesla’s artificial intelligence (AI) systems, Optimus robots, and SpaceX’s computing ambitions. Musk also wants to dramatically accelerate chip-design iterations, potentially turning faster experimentation and customized equipment into a competitive advantage.
