Tesla’s Potential Move Towards Creating In-House Integrated Circuits

Tesla, a prominent electric car manufacturer, is contemplating the development of its own integrated circuits. This notion surfaced in statements made by Elon Musk, and while it currently remains speculative, the possibility of Tesla venturing down this innovative path is not out of the question.

Presently, Tesla is already making substantial investments in integrated circuits. Its Dojo ExaPod supercomputer boasts a formidable computational power of 1.1 exaflops, used for training machine learning models for autonomous vehicle technology. In February 2024, Musk announced that Tesla would spend “over a billion dollars” on Nvidia and AMD hardware to stay competitive in the field of artificial intelligence. Although Tesla relies on Samsung chips for its Autopilot function, the potential construction of a factory to produce its own circuits for electric vehicles is feasible.

The primary consideration behind the contemplation of manufacturing in-house integrated circuits for Tesla is the concern over the company’s reliance on semiconductor suppliers from South Korea, Taiwan, and China. Recent supply chain issues with Chinese integrated circuits highlight the attractiveness of internal production. Nonetheless, the necessity of building such a factory represents a significant undertaking that requires a thoughtful decision-making process.

Elon Musk’s response to a query posed by John Carmack, a legendary game developer, suggests that while Tesla could create its own integrated circuits, Musk hopes to avoid this scenario. Prior to committing billions of dollars into a venture that could potentially falter, Tesla would need compelling economic justification for the internal production of circuits.

Read the full article here.

FAQ

The source of the article is from the blog trebujena.net