NVIDIA's Jensen Huang has responded to Elon's statements about building a chip fab, saying that it's almost impossible to match the work that TSMC does.
NVIDIA's CEO Believes That There's No Replacement For the Work That TSMC Does, Even For a Guy Like Elon Musk
For those unaware, while speaking to his shareholders, billionaire Elon Musk revealed his intentions to build a gigantic chip facility to support Tesla's ambitions in custom chips, such as the AI5. He intends to have a fab that can generate a whopping one million chips per month over time. These statements did come after Elon managed to receive a $1 trillion pay package approval, so there's no surprise that he gave a rather 'ambitious' talk, but interestingly, NVIDIA's Jensen Huang responded to the idea. While talking in Taiwan, here's what he had to say:
Building advanced chip manufacturing is extremely hard. It’s not just build the plant, but the engineering, the science and the artistry of doing what TSMC does for a living is extremely hard.
There's no surprise in what NVIDIA's CEO has said, claiming that chip fabrication isn't an expertise that can be accomplished overnight, and even entities like Intel Foundry are struggling with it, despite being in the business for several years. The idea from Elon Musk came around the fact that the chip output from TSMC, Samsung, and potentially Intel wouldn't be enough for Tesla's custom chips, and that the automaker is exploring plans to enter the chip business itself, creating a "TeraFab". This venture alone could cost 'hundreds of billions' if not less for Tesla.
NVIDIA's CEO Jensen Huang is currently in Taiwan, where he is expected to meet with TSMC's executives to discuss the supply chain situation. TSMC has become an integral part of NVIDIA's AI business, as the Taiwan chip giant powers Team Green's 'AI revolution' and is the sole semiconductor supplier. Not only this, but TSMC is doing business with every major company involved in computing, which shows that rivaling the firm isn't an easy business at all.
By the looks of it, Tesla needs massive chip capacity to fuel its vehicles and humanoid robots, which opens up enormous prospects for companies like Samsung and Intel, which are looking to get adoption for their high-end chips. At the same time, Tesla's TeraFab ambition won't be an easy one at all, but Elon is known for achieving things that seem 'impossible' at first.
News Source: Dan Nystedt
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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