Musk is unhappy with Samsung TSMC being too slow and plans to build a chip factory for Tesla.

Elon Musk plans to build an autonomous chip supply system for Tesla and openly stated that progress with existing suppliers such as Samsung and TSMC is "too slow." As an entrepreneur accustomed to setting seemingly "impossible to achieve" goals, the billionaire now sets his sights on reshaping the chip supply chain to gain a significant competitive advantage for Tesla. In a conversation with Baird Capital, Tesla CEO Musk said that the company expects explosive growth in future chip demand, mainly due to the accelerated popularization of its FSD technology. He estimated that Tesla will need an astonishing "1 billion to 200 billion" artificial intelligence chips per year, pointing out that contract manufacturers such as TSMC and Samsung simply cannot meet such huge demand. Musk said, "The current production speed is clearly not fast enough. When I asked them how long it would take to build a new wafer fab from groundbreaking to production, they replied that it would take five years. But to me, five years is like indefinitely far away." This is Musk's third public mention of building a chip factory to meet Tesla's needs, but this time he systematically analyzed the reality bottleneck of the current supply chain: to achieve the capacity required by Tesla, manufacturers such as TSMC and Samsung have planned a five-year expansion schedule. However, Musk sees this as an "infinite" waiting time and expects to complete the task in just one to two years. To achieve this goal, Musk proposed establishing his own chip factory.