NVIDIA CEO Jensen Huang said that Tesla CEO Elon Musk’s proposed plan to build a massive chip manufacturing facility was “virtually impossible.” Musk aimed to build a megafactory, or what he calls a “TeraFab,” capable of producing one million chips per month, which are critical for Tesla’s AI-enabled vehicle systems and humanoid robots.

Jensen Huang refuted Musk’s claim

Jensen Huang addressed this ambitious goal at an event in Taiwan. Huang stated that achieving the TSMC-level production scale and engineering prowess Tesla aims to achieve cannot be achieved by simply building a factory.

Huang emphasized that achieving this scale requires a complex ecosystem, combining science, engineering, and years of uninterrupted experience. The NVIDIA CEO also noted that even Intel Foundry, despite decades of experience, still faces manufacturing challenges, thus clarifying the difficulty of Musk’s plan.

Elon Musk proposed this ambitious plan with the prediction that Tesla’s growing chip needs in the future could exceed the capacity of existing manufacturers like TSMC, Samsung, and Intel. Experts agree that this project, estimated to cost hundreds of billions of dollars, is both technically complex and financially monumental.

However, according to the information included in the text, experts also point out that Elon Musk has successfully implemented many projects previously deemed “impossible.” Therefore, they state that the TeraFab idea should not be completely dismissed, but they also highlight the scale of the project’s obstacles.