Musk’s self-produced chips were ridiculed for being “more difficult than landing on Mars” and it will take at least 30 years. It is said that TSMC insiders agree

Billionaire Musk plans to produce chips in his Terafab project, but industry experts say it will be difficult. (AFP)

[Financial Channel/Comprehensive Report] Foreign media wccftech reported that according to a Korean media quote from a person familiar with TSMC’s internal affairs, billionaire Musk plans to produce chips in his Terafab project, which may be more difficult than landing a man on Mars.

South Korean media Hankyung reported that a senior Samsung executive, an analyst at Hanwha Securities, and a person familiar with TSMC's internal situation said that although building a chip manufacturing plant itself is relatively easy (provided there are sufficient funds), using the plant to produce high-yield chips is completely another matter and much more difficult.

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Park Joon-yong, an analyst at Hanwha Securities in South Korea, believes that the significance of the Terafab plan is that it aims to develop an end-to-end supply chain for chips in applications ranging from aerospace to autonomous vehicles and robotics. Park added that Intel's chip production experience is crucial for Tesla and SpaceX, which can quickly develop production systems without spending a lot of time developing technology from scratch.

A Samsung executive was more critical of Musk's efforts, arguing that the strength of the chip manufacturing industry depends on the knowledge accumulated over the years through the complex process of continuously improving yields. According to reports, Samsung often faces challenges with wafer manufacturing yields, and the executive added that it will take at least 30 years to bring equipment to mass production yield levels and maintain the optimal combination of process steps.

Additionally, a person familiar with TSMC’s inner workings agreed, noting that while it’s easy to build a manufacturing plant, it’s much more difficult to produce wafers that are free of fluctuations and errors.

Musk has big ambitions for his Terafab project, and a key partner in the project is Intel, whose next-generation 14A chip manufacturing process technology is expected to be used at the facility.

Recently, as speculation that Musk may cooperate with TSMC on chip production plans has become rampant, Terafab has once again become the focus of the news.

As the world's largest chip contract manufacturer, TSMC will bring a wealth of expertise to the project. Not only has Musk hinted at the potential collaboration that the Taiwanese company could become a subcontractor, there have also been warnings that Musk's partnership with a company critical to the Chinese market could raise concerns about his business interests in China.

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