Elon Musk stated that his companies' expertise in manufacturing custom equipment positions them to develop superior chip fabrication methods through the upcoming Terrafab factory. Speaking to investors and customers outside the Tesla Gigafactory in Austin, Texas, Musk acknowledged he does not currently know how to manufacture microchips but expressed confidence his teams will solve the challenge. During an X Takeover livestream, Musk noted that competitor facilities lack significant custom equipment, an area where his companies possess extensive experience that could improve manufacturing processes. He described chipmaking as one of the world's most difficult tasks and cautioned that achieving breakthroughs could take several years, though he believes his companies will ultimately outperform existing industry standards.