Elon Musk announced that Tesla may need to build a large semiconductor fabrication plant to meet its growing chip demands for AI and robotics. Currently reliant on external suppliers, Musk emphasized that even optimistic production forecasts from partners like TSMC aren't sufficient for Tesla's needs. The proposed facility could start with a capacity of 100,000 wafer starts per month, scaling up significantly over time.

The U.S. and Taiwan have agreed on a trade deal that will see Taiwanese firms invest $250 billion in chip production in the U.S. In return, the U.S. will lower tariffs on certain goods and allow Taiwanese companies to import additional chip production capacity without tariffs during construction. This agreement aims to reduce reliance on Taiwan's semiconductor supply amid geopolitical tensions.