Musk Admits He Has No Idea How to Make Chips, Vows to Beat Everyone Anyway

That claim targets one of the hardest industries to enter. Taiwan Semiconductor Manufacturing Co. (TSMC) and its rivals have spent decades polishing their processes and pour tens of billions of dollars into them each year.

Why Does Custom Equipment Matter to Musk?

“I don’t know how to make chips, to be clear. I have no idea how to make chips. But we’ll figure it out… I had no idea how to make cars or rockets as well.”

He said the factory tours he took at Intel, Samsung, and TSMC left a strong impression. At the same time, he noticed the machines came mostly from the same suppliers, with very little customization.

Tesla operates the other way. Much of its production equipment is designed in-house, including through its Tesla Automation Germany unit.

That know-how, Musk argued, could help his companies improve chip manufacturing, according to Bloomberg.

“I don’t want to be complacent or entitled or anything, but, I think probably we’ll figure out how to make chips better than anyone. Honestly. I don’t know how long it’s going to take us to do that. It might take us quite a few years.”

What Difference Would 10 Chip Designs a Year Make?

Speed is at the core of the effort. Musk said a significant chip design typically takes around two years to go from initial draft to mass production.

That kind of timeline is already regarded as fast in the business. Musk instead wants his engineers handling about 10 designs per year.

He accepted that some attempts would fail. More iterations, though, would allow teams to try out concepts earlier and move ahead more quickly.

A day later, Musk had turned the pitch into a recruitment post.

If you’re a world-class chip design or production engineer, consider joining SpaceX or Tesla.

How cool would it be to iterate on designs and customize production machines at lightning speed? https://t.co/H9v1lHQwKV

— Elon Musk (@elonmusk) October 11, 2026

Terafab Bets $15 Billion on That Boast

Money is already behind the plan. Terafab, the chip plant that Tesla and SpaceX are building in Grimes County, Texas, has Intel as a joint-venture partner.

Initial spending will exceed $15 billion. Around 3,000 jobs are expected, and the Texas Enterprise Fund, a state incentive program, is set to provide a $30 million grant.

Musk also wants the site run by his own companies. On X, he rejected the idea that TSMC would own and run the fab.

Terafab will show whether the production expertise developed for cars and rockets transfers to semiconductors. Advanced chipmaking today resides with a small group of foundries, led by TSMC. By his own account, the experiment may continue for several years.