Elon Musk announced plans to start manufacturing computer chips for both Tesla and SpaceX. The billionaire wants his companies to make their own processors instead of buying them from other manufacturers.
This move could help Musk’s companies save money and have more control over their technology. Tesla cars need chips for self-driving features, while SpaceX rockets require specialized processors for navigation and communication systems.
Another Big Musk Promise
Musk has a track record of making bold announcements that don’t always happen on time. He promised fully self-driving cars by 2020, said Tesla would make 20 million cars per year by 2030, and claimed SpaceX would send humans to Mars by 2024. None of these predictions came true as planned.
Building computer chips is incredibly expensive and complex. Companies like Intel and Taiwan Semiconductor spend billions of dollars on factories that take years to build. Most car companies and space firms buy chips from established manufacturers rather than making their own.
The chip shortage during COVID-19 hurt many companies, including Tesla. Making their own processors could protect Musk’s businesses from future supply problems. Apple successfully makes its own chips for iPhones and computers, proving it can work for tech-focused companies.
Musk hasn’t shared details about timelines, costs, or where these chip factories would be built. Industry experts say developing custom processors typically takes 3-5 years and costs several billion dollars.