Musk said current suppliers such as TSMC, Samsung, and Micron cannot meet the company’s long-term needs and warned of a looming "chip wall." Tesla Inc. is considering building its own semiconductor manufacturing facility as chip supply constraints threaten its growth in artificial intelligence and autonomous technologies, according to CEO Elon Musk. Samsung’s Texas foundry will begin testing extreme ultraviolet lithography equipment in March 2026 to support AI5 production in the second half of the year. Tesla is also exploring a potential collaboration with Intel for the Terafab facility, while investing $2 billion into xAI to bolster its AI hardware and software capabilities. Musk has emphasized the critical nature of the AI5 chip, stating that “solving AI5 was existential” for Tesla and personally dedicating every Saturday for several months to its development.