In a remarkable statement, Jensen Huang, the CEO of Nvidia, reacted to Elon Musk’s ambitious plans to build a huge chip factory, stressing that it is almost impossible to replicate TSMC’s achievements. This reaction took place after Elon Musk, in a conversation with Tesla shareholders, unveiled his intention to build a giant chip production center with the capacity to produce one million chips per month. Musk’s goal with this project, called TeraFab, is to meet Tesla’s growing needs for custom chips such as the AI5 artificial intelligence chip.
“It’s incredibly difficult to build advanced chip manufacturing facilities,” said Huang, who is based in Taiwan. “It’s not just building the factory, it’s the engineering, science and art that TSMC does for a living. It’s incredibly hard.” With these words, the CEO of Nvidia pointed to the technical and scientific complexities of this industry and reminded that even companies with a long history like Intel are also dealing with serious challenges in this direction and this expertise is not something that can be achieved overnight.
The comments come as Jensen Huang is in Taiwan to discuss supply chain issues with TSMC executives. TSMC is not only the exclusive supplier of Nvidia’s AI chips, but also cooperates with all major companies in the field of computing, which makes it very difficult to compete with it. On the other hand, Elon Musk believes that the current output of companies such as TSMC, Samsung and Intel will not be enough to meet Tesla’s future needs in the field of self-driving cars and humanoid robots.
Although Musk’s ambition to build a “Trafab” that could cost hundreds of billions of dollars seems far-fetched, he has a stellar track record of bringing projects that initially seemed “impossible” to fruition. However, Huang’s warning indicates the depth of the challenges Elon Musk will face along the way.

Source: wccftech
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