Musk is considering building his own chip factory to cope with surging demand.

Tesla CEO Elon Musk stated that the company's future chip demand will increase significantly due to the widespread adoption of Full Self-Driving (FSD) technology. He estimates that the company will need 100 billion to 200 billion AI chips annually, a demand that existing suppliers such as TSMC and Samsung cannot meet. Musk is considering building his own chip factory, but analysts have expressed skepticism, believing that Tesla should partner with foundries.