Elon Musk says the US must control chip production to beat China in AI race, reigniting Intel foundry rumors
AI's next battleground is chip supply control. Elon Musk highlighted the importance of semiconductor production for the US.
If you’re sick of AI discussions, I’m sorry, but it’s inevitable. The AI race reached a new level after ChatGPT’s launch in 2022, and tech companies have been competing in this field for years now. 2025 looks like more of the same, if not even crazier - but now, the focus seems to be shifting toward chip production.
Elon Musk on AI: Why chip production decides the winner
During a recent podcast with Senator Ted Cruz, Elon Musk covered topics from Magic Money Computers to the political backlash against him. Around the 20-minute mark, the conversation moved on to AI and what’s next for its future.
Elon Musk highlighted the crucial role of semiconductor production in the AI race against China. He argued that to stay ahead, the US must be in charge of AI chip manufacturing, a sector currently dominated by Taiwan. Here’s what he said:
For the next few years I think America is likely to win. Then, it will be a function of who controls the AI chip fabrication. If more of them are controlled by China, the China will win.
When asked how the US compares to China in this field, Elon Musk responded:
Right now almost all the advanced AI chip factories are in Taiwan. If China were to invade Taiwan, the world would be cut off from advanced AI chips. Currently 100% of advanced AI chips are made in Taiwan.
Ben Ferguson asked about the importance of "National Security" in this issue, and Musk emphasized that it’s crucial and that not enough is being done. His comment reignited a well-known rumor that he might have a role in Intel’s future. There’s been talk that Musk could buy a stake in Intel, possibly its foundry services, and his latest remarks make it clear he’s interested.
Musk isn’t the first to think this way. It's no secret that the semiconductor industry has relied on Asian manufacturing (especially in Taiwan) for years. The COVID-19 pandemic made this problem impossible to ignore, leading to shortages of car parts, for example. Remember how hard it was to buy graphics cards and PlayStation 5? Scalpers made a fortune during that time.
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