Elon Musk, CEO of Tesla Inc., has revealed plans for the automaker to develop its own semiconductor fabrication capabilities at the 2-nanometer scale. During a recent discussion with entrepreneur Peter Diamandis, Musk highlighted the ongoing progress in chip manufacturing toward atomic-level assembly of circuits, noting that there are roughly four or five silicon atoms present per nanometer in current circuit designs.
Musk expressed particular concern over the practices of existing foundries, critiquing their execution of clean room protocols. For context, clean rooms within chip fabrication facilities maintain meticulously controlled environments, regulating variables such as airborne particulate levels, humidity, and other factors to prevent any contamination that could compromise wafer integrity.
Distinctively, Musk unveiled Tesla’s vision for its 2nm chip fabrication plant, emphasizing that unlike traditional facilities, employees would be able to eat a cheeseburger and smoke a cigar inside the clean room without contaminating the wafers. This claim rests on Tesla’s plan to implement continuous wafer isolation measures to shield the chips from any potential impurities throughout the manufacturing process. Such an approach marks a departure from conventional notions of clean room restrictions, suggesting innovative methods to maintain fabrication quality while relaxing some operational constraints.
Meanwhile, Nvidia Corporation showcased its latest advancement in AI-focused semiconductors by introducing the Vera Rubin chipset at the 2026 Consumer Electronics Show (CES). This new chipset promises more than a fivefold power increase compared to its predecessor, the Blackwell chip. Elon Musk shared his viewpoint on Nvidia’s technology, estimating that it would require at least nine months to reach scaled production where the associated software ecosystem could operate efficiently and reliably.
Tesla’s stock performance was also noted, with evaluations placing the company favorably in terms of Momentum and Quality metrics, though with a poor Value assessment. These performance indicators align with Tesla’s positive price trend observed across short, medium, and long-term horizons. In pre-market trading on the relevant Wednesday, Tesla shares rose by 0.46 percent, underscoring steady investor interest amid the company’s chip development revelations.
The significance of Tesla undertaking in-house chip fabrication at such an advanced scale cannot be understated. Semiconductor manufacturing at the 2nm level involves extreme technical challenges, including the need to control fabrication environments to the atomic scale and manage wafer handling to prevent microscopic contamination. Tesla’s commitment suggests a strategic emphasis on securing supply chain autonomy and optimizing chip design tailored to their electric vehicles and AI applications.
Nvidia’s Vera Rubin chip introduction complements this narrative by indicating the rapid pace of AI hardware enhancement in the broader technology sector. While the performance leap promises considerable computational gains, Musk’s cautious timeline underscores the complexity involved in moving from chip design breakthroughs to stable, high-volume deployment and software integration.
Overall, Tesla’s announcement represents a significant step into semiconductor fabrication with ambitious goals that could reshape aspects of electric vehicle hardware integration and AI processing capabilities. The company’s unique approach to clean room protocols, if successful, may also influence future manufacturing standards and operational practices within the industry.