Tesla(US:TSLA) CNBCยท2025-11-07 03:42Core Viewpoint - Tesla is considering building a large semiconductor fabrication plant to meet its growing demand for chips driven by its ambitions in artificial intelligence and robotics [1][2]. Group 1: Semiconductor Fabrication Plant - Tesla's CEO indicated the necessity of a "gigantic" chip fabrication facility, referred to as a "Tesla terra fab," to achieve the required chip production volume [1][2]. - The initial capacity of the proposed fab could reach 100,000 wafer starts per month, with potential scaling up to 1 million wafer starts per month [3]. Group 2: Current Supply Chain and Demand - Currently, Tesla relies on contract manufacturers like Taiwan Semiconductor Manufacturing Company (TSMC) and Samsung Electronics for chip production, but the supply is insufficient even under the best-case scenarios [2][3]. - The semiconductor industry is experiencing a surge in demand due to the AI boom, impacting all modern technologies, including automotive and robotics [2][4]. Group 3: Industry Context - TSMC's annual wafer production capacity is projected to reach 17 million in 2024, translating to approximately 1.42 million wafer starts per month, highlighting the scale of production needed by Tesla [3][4]. - Musk emphasized that advancements in AI and robotics could significantly enhance the global economy, potentially increasing it by factors of 10 or even 100, indicating the strategic importance of these technologies for Tesla's future [4].