"I can't see any other way to meet the chip demand"! Musk declares "to build a chip super factory"

Tesla is planning to take a highly ambitious step by potentially venturing into chip manufacturing. Musk stated that to meet the enormous computing power demands of autonomous vehicles and humanoid robots, Tesla may ultimately need to build a "massive chip factory," aimed at ensuring the supply of key components in the future and possibly reshaping its vertical integration strategy.

At Tesla's annual shareholder meeting held in Texas on Thursday, Musk clearly expressed this intention. He stated, "I don't see any other way for us to get the number of chips we want." This remark directly points to Tesla's concerns about future chip usage and its determination to tackle challenges through self-built capacity.

If implemented, this move would be an extraordinary attempt within the industry. Currently, the manufacturing of advanced chips globally is mainly dominated by a few giants such as TSMC, Samsung, and Intel, with automakers typically playing the role of chip purchasers or designers rather than manufacturers. Musk's comments suggest that Tesla may break this pattern and elevate its control over the supply chain to a new level.

Currently, Tesla employs a hybrid chip strategy, sourcing chips from companies like NVIDIA while also designing proprietary chips that are produced by foundries such as Samsung and TSMC. Musk also revealed at the meeting that Tesla may reach a manufacturing agreement with Intel, indicating that it is exploring multiple avenues to secure chip supply.

Targeting Specialized Chips for Higher Cost-Effectiveness

Musk disclosed that he has recently spent a significant amount of time collaborating with Tesla's chip design team, aiming to develop an internal chip specifically for Tesla products. The design goal for this chip is very clear: to achieve performance "roughly comparable" to NVIDIA's Blackwell chip while consuming only "about one-third" of its power and costing "far less than 10% of it."

Musk praised the powerful performance of NVIDIA chips but also pointed out their limitations as general-purpose chips. In contrast, Tesla can maximize its specific needs by designing specialized chips, thereby gaining significant advantages in efficiency and cost. This strategy highlights Tesla's intention to build its core competitiveness in artificial intelligence and autonomous driving through deeply customized hardware.

Autonomous Driving and Robotics Vision Driving Demand

Tesla's thirst for chip capacity directly stems from its grand plans for future products. Musk stated that these high-performance self-developed chips will be used in products like the "Cybercab" and the humanoid robot "Optimus."

The Cybercab is an autonomous vehicle without a steering wheel or pedals, and Musk added that production of this model will begin in April next year. As for Optimus, Musk made a series of bold predictions, including that it will be able to perform surgeries "better than the best human surgeons" and even "eliminate poverty," potentially expanding the global economy "tenfold or more." He expects the manufacturing cost of Optimus to eventually drop to $20,000. These disruptive product concepts all require massive computing power as support, which explains why securing chip supply has become an urgent priority for Tesla. **

In-depth Considerations for Increasing Vertical Integration

The plan to build its own chip factory marks Tesla's intention to add a crucial link to its already vertically integrated model that includes automotive and battery manufacturing. The core motivation behind this strategic move is to ensure a stable supply of the enormous future chip demand and reduce reliance on external suppliers.

Although Musk did not provide a specific timeline or location for the factory, he described its scale as "much larger than a giga," implying that its investment and capacity will far exceed the existing "gigafactories." From procurement to cooperative outsourcing, and now considering building its own factory, Tesla's deepening steps in its chip strategy reflect that mastering core computing power has become the ultimate battleground for tech giants in the era of artificial intelligence. As Musk stated, building its own factory seems to be the only option to meet future chip demands