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Kuo Backs Musk’s In-House Chip Fab Push as Tesla Targets AI6 Within a Year

An influential analyst says the strategy is about gaining tighter control over design and manufacturing rather than a shortage of foundry supply.

Overview

  • Elon Musk said he is hopeful Tesla can move from AI5 to AI6 in under a year within the same facility, doubling performance metrics.
  • Ming-Chi Kuo endorsed the plan and cited C.C. Wei’s message that TSMC can supply chips if customers pay, framing Tesla’s shift as a control decision.
  • Kuo identified geopolitical exposure, R&D flexibility, and vertical integration as the core motivations for building Tesla’s own fabs.
  • Tesla’s current AI5 chips are being produced by Samsung and TSMC, with no confirmed locations or timelines for any Tesla-built fabs despite ongoing AI5 design reviews in California and Texas.
  • Musk claimed AI5 would rival Nvidia’s Blackwell while using about one-third the power and costing under 10% as much, though some analysts warn the fab effort could be an expensive diversion.