Kinngai Chan of Summit Insights Group said AI memory chip makers such as SK Hynix, Samsung and Micron are shifting production away from processes that use ASML's older DUV tools toward new and pricier EUV tools, a profitable "upgrade cycle". ASML "can surely be" Europe's first trillion-dollar firm, ING analyst Marc Hesselink said. And then there is the possibility that chip demand accelerates. The new Terafab plant planned by Elon Musk in Texas to supply SpaceX
Terafab is a logic plant and does not touch memory at all — if anything, cheaper logic chips would add to HBM demand; and orbital data centres make the silicon problem worse rather than better, because destroyed satellites support no second-hand chip market and unrepairable failures mean flying 20–40% more chips for the same delivered capacity.
"We are doing everything we can, wherever we can, to expand to support the customers' growth," chief financial officer Wendell Huang said in an interview on Friday. The company faces growing competition from Intel Corp and Elon Musk's Terafab...
And it's the latest sign of something ... makes the power — and now the hardware. They share a chip fab, Terafab, board members, engineers, and Tesla even owns about $4B of SpaceX....
TSMC adds $100B to Arizona, total $265B, driven by AI demand from Nvidia and Apple. Faces Intel and Terafab rivals. Analysts warn margins may compress.
Terafab was announced by Musk back ... a massive, vertically integrated semiconductor manufacturing project that would provide all the chips the three companies needed for their AI initiatives without needing third-party companies...
Investors will be watching for progress on Intel’s data centre and AI chip roadmap — including updates on its Terafab project and recently announced deals with Google — as well as any guidance on whether the margin recovery seen in Q1 can continue into the second half of the year. With Alphabet and Tesla reporting on the same day (July 22), it makes for the marquee earnings event of the week.
Tied to this is the Terafab semiconductor project, which Oppenheimer recently described as "critical" to SpaceX's future valuation, while also cautioning that it remains speculative and carries real execution risk.
While it has been very pleasant to be a shareholder in these names over the last year, the longer pricing remains at these levels, the more competition will get oxygen as well. We can already see this with CXMT, China’s DRAM manufacturer, which is seeing a boom in revenues as well given that they’re a price follower. This is also a key reason why the SpaceX-Tesla Terafab will focus on manufacturing DRAM.
It will make AI chips with Terafab for orbital data centers. There's a historical pattern here. Standard Oil owned the wells, refineries, pipelines, and tank cars. Carnegie Steel owned the mines, mills, and railroads. SpaceX is attempting something similar for the AI era by integrating launch, satellites, orbital compute, and AI into a single platform.
Waymo has 200 vehicles in Austin. At the same time, Tesla’s free cash flow has retreated as the company has teamed up with SpaceX (NASDAQ:SPCX) to build Terafab, a large semiconductor project in Texas.
Catalysts include Cybercab production has just started, Semi ramps this year, and CFO Vaibhav Taneja’s guidance to “over $25 billion of CapEx” in 2026 for six factories, AI infrastructure, and Terafab. Elon Musk described unsupervised FSD reaching customer cars “probably in the fourth quarter” and Optimus as “the biggest product ever”. Robotaxi is live in Austin, Dallas, and Houston with zero reported incidents. Polymarket traders assign an 81.5% probability to Tesla beating its next earnings re
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Business Insider has reported that SpaceX plans to build out Terafab in Grimes County, Texas, but this is unconfirmed. ... Musk confirmed recently that it would not be on Giga Texas property, as it is simply too large.
As a reminder, SpaceXAI has already announced that it will spend as much as $119 billion on building its own TeraFab because TSMC’s and others’ manufacturing capacity isn’t anywhere near what SpaceXAI’s and Tesla’s future needs are.
Apple is considering manufacturing some of its M-series processors on Intel’s 18A-P node, while Google might tap the chip-maker EMIB (Embedded Multi-die Interconnect Bridge) advanced packaging for TPU v8e. Notably, Intel’s flagship Panther Lake mobile processor and the Clearwater Forest server CPU are both built on its 18A process, while Tesla has tapped Intel’s 14A node to manufacture chips for its Terafab data center complex in Austin.
While Tesla announced its Terafab semiconductor manufacturing initiative in March 2026, the company remains dependent on external foundries for advanced chip production in the near term.
Downtown Austin’s Seaholm Power Plant, which was quietly occupied by several Elon Musk-affiliated companies earlier this year, is getting a $5.2 million facelift. The planned renovations have been put in place by Wit Tech, a company with links to SpaceX, the firm that is pushing the construction of the Terafab semiconductor manufacturing plant in Grimes County.
“TSMC also announced an additional $100B investment at its Arizona fab cluster that entails 4+ fabs (front-end wafer and advanced packaging). This brings its long- term investment goal in Arizona to $265B. We believe this incremental commitment could be in response to competitive risks represented by new leading-edge foundry investments by Terafab (Intel a technology partner) and Samsung Foundry,” Sankar said.