Core Viewpoint - Tesla's CEO Elon Musk is considering building a chip manufacturing facility named "TeraFab" to meet the growing demand for AI chips, aiming for a scale larger than TSMC's "Gigafab" [2][4]. Group 1: Tesla's Chip Manufacturing Plans - Musk indicated that Tesla may directly invest in chip production to address the substantial semiconductor needs for AI applications, suggesting that TeraFab would have a monthly capacity exceeding 100,000 wafers [2][4]. - Currently, TSMC's facilities producing 30,000 to 100,000 wafers per month are classified as "Megafab," while those exceeding 100,000 wafers are termed "Gigafab" [2]. - If TeraFab is realized, it could position Tesla among the largest chip manufacturers globally, surpassing current mainstream wafer manufacturers [2]. Group 2: Challenges in Chip Manufacturing - Nvidia's CEO Jensen Huang emphasized the complexity of establishing advanced chip manufacturing capabilities, noting that it requires significant engineering expertise, scientific research, and process experience [3][6]. - The investment required for a facility capable of producing approximately 20,000 wafers per month can reach several billion dollars, excluding ongoing development and production tuning costs [6]. - The example of the Japanese startup Rapidus, which aims to establish 2nm process capabilities by 2027 with an estimated expenditure of around $32 billion, illustrates the high stakes and challenges in entering advanced semiconductor manufacturing [6][7]. Group 3: Tesla's Current Supply Chain Strategy - To ensure a stable supply of chips, Tesla is currently utilizing a dual-sourcing strategy with TSMC and Samsung, and is considering Intel as a potential partner, although no agreements have been finalized [4][5]. - Musk stated that as Tesla's AI applications expand, reliance on external suppliers will become insufficient, necessitating a shift towards becoming a vertically integrated manufacturer similar to TSMC and Samsung [4].