GoKawiilMusk says he lacks chipmaking expertise despite $15B Terafab plan in Texas
Elon Musk told attendees at an X Takeover event that he has no experience making microchips, even as he moves forward with Terafab, a planned $15 billion-plus semiconductor factory in Texas involving Tesla, SpaceX and Intel. The project is projected to create about 3,000 jobs, and Musk said his companies would begin with standard chipmaking equipment before modifying it to boost output.
GoKawiil's interpretation of the reporting above, not reported fact.
Musk's admitted inexperience in semiconductor manufacturing raises questions about the feasibility of matching established players like TSMC, Samsung and Intel, who have decades of specialized know-how. His comments suggest a strategy of leveraging Tesla and SpaceX's custom manufacturing expertise to compensate, though this approach is unproven in chip fabrication, an industry Musk himself called among the hardest in the world. Intel's involvement could signal an attempt to access existing technical knowledge to offset that gap.
- Musk acknowledged having no prior expertise in microchip manufacturing.
- Terafab, a planned Texas chip factory, involves Tesla, SpaceX and Intel with over $15 billion in initial investment and about 3,000 jobs expected.
- Musk's strategy relies on adapting standard chipmaking equipment using his companies' custom manufacturing experience.
Source: entrepreneur.com — Jonathan Small, 2026-10-12
Published there as: “Elon Musk Admits He Has ‘No Idea How to Make Microchips.’ He’s Building a $15 Billion Chip Factory Anyway.”
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