Nvidia’s Huang doubts Tesla can match TSMC chipmaking power
Jensen Huang, chief executive of Nvidia, said Elon Musk’s proposal for a Tesla chip foundry faces steep hurdles and that matching TSMC’s capabilities is virtually impossible. TeraFab aims to produce as many as 1 million chips each month to serve artificial intelligence work and vehicle systems, an effort meant to bring more of the semiconductor supply chain under Tesla’s control. Because top foundries such as TSMC, Samsung and Intel are operating near capacity while demand for AI silicon rises, Tesla is pursuing in-house production to support future designs like the AI5 chip.
Funding for the effort could run into many billions and the technical challenges are extensive. That assessment echoes Huang’s point that building a high-volume fab depends on decades of engineering, scientific know-how and manufacturing craft that firms like TSMC have refined over time. Citing Intel, he noted even long-established chipmakers continue to wrestle with production issues, which suggests money alone will not erase the gap with world-class foundries.
Executives are meeting in Taiwan to discuss supply stability and capacity for Nvidia’s growing AI business. Analysts say TeraFab remains a proposal and that partnering with an experienced manufacturer may be more realistic than attempting to build a top-tier foundry from the ground up.
