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Nvidia CEO Jensen Huang Pushes Back On Elon Musk's Plan To Build Chip Fab, Says What TSMC Does Is 'Extremely Hard'

Author: Ananya Gairola | November 08, 2025 12:49am

Nvidia Corporation (NASDAQ:NVDA) CEO Jensen Huang seems to have cautioned Tesla Inc. (NASDAQ:TSLA) boss Elon Musk against underestimating the complexities of semiconductor manufacturing.

Jensen Huang Comments On Musk's Chip Fab Ambition

Earlier this week, Musk told Tesla shareholders that he plans to build a massive in-house chip fabrication plant to support the automaker's growing AI ambitions.

The facility, Musk said, could eventually produce up to one million chips per month, designed to power Tesla's next-generation AI5 processors and the company's Dojo supercomputers.

His announcement followed shareholder approval of his $1 trillion pay package.

While in Taiwan this week, Huang — whose company relies on TSMC for advanced chip production — offered a response.

On Friday, He said that building an advanced chip fab is "extremely hard," highlighting that it's not just about constructing a plant but mastering the engineering, science, and artistry that make TSMC the world's most advanced foundry.

See Also: Tesla's $1 Trillion Illusion: Elon Musk's Pay Package And The Robotaxi Myth

Musk's Strategy: Diversify And Control The Supply Chain

During the shareholder meeting, Musk acknowledged that Tesla currently partners with TSMC and Samsung Electronics Co. (OTC:SSNLF) and hinted at potential talks with Intel Corp (NASDAQ:INTC), saying it's "probably worth having discussions."

TSMC closed at $286.50 on Friday, down 0.94%, while its after-hours trading rose 0.72% to $288.57. Benzinga’s Edge Stock Rankings show that TSMC maintains a solid upward trajectory across short, medium, and long-term time frames. Click here for an in-depth comparison with its competitors.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Image via Shutterstock

Posted In: INTC NVDA SSNLF TSLA

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