All 2527 headlines in chronological order — Page 15
Elon was expected to speak to ASML employees, the only company in the world to manufacture extreme ultraviolet lithography (EUV) machines, about his Terafab project, announced in March 2026 as a collaboration between xAI, Tesla and SpaceX.
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The facility is planned near the Gibbons Creek Reservoir in Grimes County, Texas. Initial construction is estimated at $55 billion, with total investment potentially reaching $119 billion across multiple phases.
ASML’s involvement is the detail that gives this project credibility. The Dutch company holds a monopoly on extreme ultraviolet (EUV) lithography machines, the equipment required to manufacture chips at the most advanced process nodes.
ASML’s involvement is the detail that gives this project credibility. The Dutch company holds a monopoly on extreme ultraviolet (EUV) lithography machines, the equipment required to manufacture chips at the most advanced process nodes.
ASML is the sole provider of a machine necessary for manufacturing leading-edge chips for AI, making it a likely supplier to Musk's planned Terafab chip plant.
🚨 BREAKING: Elon Musk REVEALS the MIND-BLOWING scale of TERAFAB! Current AI chip production is a TINY 100 gigawatts PER YEAR? THAT'S NOTHING! To reach the n...
Nathan Jensen, a professor in the department of government at the University of Texas at Austin, noted that details to verify compliance with the Grimes County deal are slim and that there is a clause that allows SpaceX to challenge its tax appraisal. In what Jensen describes as a “shocking oversight,” the agreement documents don’t specify wage standards for jobs created. In its new applications, Terafab AI notes that it has explored sites in Arizona, New Mexico and Nevada.
The analyst stated that the company could also record an IEEPA (International Emergency Economic Powers Act) receivable this quarter, similar to what Ford (F) and General Motors (GM) did last quarter, which could boost gross margins and provide upside to expectations. Meanwhile, Spak is looking forward to several updates, including a long-term vision for robotaxi, Optimus, FSD (full self-driving), and TeraFab.
A caveat worth noting: The supposed cost advantage of building compute in orbit is an estimated $15–20 billion per gigawatt, versus $28–32 billion terrestrially. But that discount depends partly on the success of Terafab (the giant chipmaking project SpaceX plans with Tesla) to reduce reliance on Nvidia and other third-party suppliers.
Elon Musk’s Tesla and SpaceX have pursued Terafab concepts aimed at terawatt-scale computing infrastructure. Estimates for one such effort run toward $20 billion or more. The contrast stands stark. Megafabs versus networks of small ones. Centralized production versus distributed, replicable facilities. Both approaches seek to expand American chipmaking capacity.
RBC Capital Markets analyst Tom Narayan pointed out that the primary driver for SpaceX seeking a merger is "operational synergy," and consequently raised his Tesla price target from $475 to $500, implying approximately 22% upside from current levels. He specifically cited the Terafab chip initiative, SpaceX's reliance on Tesla's Megapack energy storage products, and collaboration in AI training as justifications for deeper integration.
The filing also fits Musk’s wider push to move AI infrastructure into orbit. Earlier this week, Musk said, "Space is the only way to scale at scale," while SpaceX has explored orbital AI data centers and a Terafab chip project in Texas.
Shares debuted at $150 and climbed 50% to an all-time high of $225.64 on June 16. The surge briefly pushed SpaceX’s valuation past Amazon and near $3 trillion before concerns grew over a bond offering, heavy Terafab data center spending, and upcoming insider lockup expirations.
Terafab could impact Tesla and SpaceX supply chains and semiconductor manufacturing, influencing broader AI and robotics initiatives.
In March 2026, Tesla, SpaceX, and xAI announced Terafab, a joint chip manufacturing facility originally projected at $25 billion.
At the time, Musk said that if ... · He went on to confirm plans to build a semiconductor plant in Austin, Texas, in March 2026, with the site set to be adjacent to Tesla’s headquarters and run as a joint venture between ...
Various major technological companies such as Google, Amazon and Meta are in the race to capitalize on this industry, with Intel being no exception. Data center in states such as Texas are making headway with the latest being Cipher Digital’s planned 500MW campus outside Waco, Texas. SpaceX is also looking to capitalize on the industry with the unveiling of the $55bn Terafab chip making facility.
Last year, Trump’s team turned $8.9 billion of CHIPS Act grants into a 10% stake in Intel, plus promised more money to expand U.S factories. On Truth Social, Trump celebrated this, bragging that Intel’s market value soared from about $100 billion to $600 billion in just nine months—boosting the government’s investment big time. He also talked up other deals the government helped secure for Intel, including one with Nvidia and a new project with Elon Musk called “Terafab.”
A stable or modestly growing EV business is useful as long as it can fund Musk’s growing AI ambitions.Garrett Nelson, senior vice president of equity research at CFRA, said he’s focused on whether the company can deliver on those ambitious products and timelines. He is also watching Tesla’s plans to increase capital expenditures.“It’s not so much about the deliveries, it’s more about bigger picture like the Terafab announcement, and this spending binge that Tesla is embarking on,” Nelson said.