Elon Musk claims the country that controls "chip fabs" will win the AI race, saying that the US needs to step up in this segment in order to show its dominance.
Billionaire Elon Musk Says China Invading Taiwan Means That The World Will Be Cut off From Advanced AI Chips
Well, the US semiconductor industry is undergoing a massive transition. With the incoming Trump administration, we now see companies like TSMC and many others interested in setting up facilities in the country. This is a part of the plan to bring semiconductor dominance back to the US, and it seems like Musk is involved in this venture. In a podcast with Ted Cruz, Elon claims that to win the "AI race" against China, the US needs to control the AI chip fabrication process, which is now dominated by Taiwan.
Here's what Musk said when asked about whether the US would win the ongoing AI race, in the span of a few years:
For the next few years, I think America is likely to win. Then, it will be who controls the AI chip fabrication. If China controls it, then China will win.
Right now, almost all the advanced AI chips are made in Taiwan, and if China were to invade Taiwan in the near time, the world would be cut off from advanced AI chips
- Elon Musk
Elon claims that bringing chip production back to the US is a matter of "national security" and shouldn't be compromised. As far as what the US has done in the past few years, it has brought in one of the world's biggest chip incentives, the "CHIPS Act," pledging up to $65 billion to companies setting up facilities nationwide. This policy has initially ignited the move of firms like TSMC into the country, with facilities like those in Arizona.
Now, with the Trump administration, they have adopted a somewhat more aggressive approach, threatening nations like Taiwan, which has ultimately forced the likes of TSMC to show more devotion. The Taiwan giant has recently announced a $165 billion investment in the US, opening up new fab and R&D facilities, and this shows how important bringing back chip production to the country is for the current administration.
Elon's comments have also sparked a new rumor, or instead supported a previous one, where it claims that the billionaire will play a part in how Intel turns out in the future. It was rumored that Musk might acquire a portion of Intel, likely the foundry service, and his latest comments show that he has interest in this segment. However, take this with a grain of salt for now, as nothing has been confirmed.
About the author: Muhammad Zuhair is a hardware and technology reporter for Wccftech, specializing in the semiconductor industry and the complex interplay between technology, manufacturing, and geopolitics. His coverage focuses on the corporate strategies and technological roadmaps of industry giants like TSMC, NVIDIA, Samsung, and Intel. Zuhair's expertise lies in deconstructing complex topics such as fabrication nodes (e.g., 2nm process), the economic impact of policies like the CHIPS Act, and the strategic development of AI infrastructure from NVIDIA, AMD and Intel.
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