TSMC, Samsung… And Maybe Intel? Why Tesla's Chip Strategy Is Trying To Cover Every Foundry

Core Insights - The main issue facing Tesla is not the demand for its vehicles, but rather the global shortage of silicon chips necessary for its AI ambitions [1] - Tesla is collaborating with TSMC and Samsung to produce its upcoming AI5 chip, which is essential for its self-driving systems [2] - Despite these partnerships, Tesla is exploring discussions with Intel and considering building its own chip manufacturing facility, referred to as "TeraFab" [3][4] Group 1: Chip Production Challenges - Elon Musk expressed concerns about the sufficiency of chip production, indicating that even optimistic projections from suppliers are inadequate [3] - The demand for advanced chips is increasing rapidly due to the scaling of Tesla's AI models and its Dojo supercomputer [3] - Diversifying chip production across multiple foundries and potentially establishing in-house manufacturing is seen as a strategy to maintain control over critical inputs [3][4] Group 2: Strategic Vision for AI Chips - Musk aims for Tesla's AI chips to advance more quickly than industry standards, with plans to transition from AI5 to AI6 in under a year while doubling performance metrics [5] - The potential establishment of TeraFab would signify a major shift for Tesla, transforming it from an automaker to a vertically integrated AI hardware company [6] - The urgency of the situation is underscored by Musk's ongoing inquiry about how to ensure sufficient chip production [6]