Overview
- Elon Musk publicly acknowledged he currently does not know how to manufacture microchips but said his companies will figure it out.
- He is promoting a proposed Terafab in Grimes County, Texas, described as a Tesla/SpaceX/Intel project with initial investment estimated above $15 billion.
- Intel’s CEO has been quoted as confirming continued Intel participation while Musk denied that TSMC will be involved in the effort.
- Musk argued Tesla and SpaceX experience building custom manufacturing equipment could help them improve chipmaking processes but warned the work is one of the hardest tasks and could take years to master.
- Industry context: building leading-edge fabs typically takes years, bespoke equipment, and tens of billions of dollars, so the project’s technical timeline, costs, and supply-chain risks remain uncertain and could shape U.S. chip capacity and local jobs.