The companies already share deep operational ties, including SpaceX’s $697 million in Tesla Megapack purchases and joint planning for the Terafab semiconductor facility to support AI infrastructure. With SpaceX’s anticipated June 2026 listing expected to value it near $1.75 trillion, analysts such as Wedbush’s Dan Ives see 80%+ odds of a post-IPO merger in 2027 driven by AI synergies and Musk’s control.
This is important because SpaceX can’t supply its own chips for the satellites. Why? Because SpaceX doesn’t make chips… yet. Musk has planned for this situation, however, with the construction of Terafab in Texas, where SpaceX and Tesla (TSLA) – with plenty of help from American chip giant Intel (INTC) – will make their own chips.
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.
The two companies have shared employees ... collaborating on a $55 billion "Terafab" chip-making moonshot that will build semiconductors for SpaceX's AI satellites, as well as Tesla's robotaxis and humanoid robots....
With xAI comes the Grok large language model and X, formerly known as Twitter. And to entice developers, the company struck a deal with AI coding upstart Cursor, with an option to buy the business for $60 billion in stock. Then there's the Terafab semiconductor fab and computing mega project that it's jointly developing with Tesla.
Elon Musk announced Terafab, a proposed chip manufacturing campus in Austin to produce semiconductors for Tesla and SpaceX, aiming for massive terrestrial and orbital compute capacity.
The proposed Terafab is expected to manufacture both logic and memory chips all in the same facility. Initially, the goal is to produce logic chips at the sub-2nm node. And if that isn’t enough, the same facility will also package and test these chips.
Elon Musk, known for his audacious ... This project, informally dubbed a “Terafab,” aims to establish a dedicated semiconductor fabrication plant for his own companies....
He described Tesla as operating the research fab, while SpaceX would handle the early-stage buildout for the Terafab—an approach that suggests a pilot-line model intended to validate technical feasibility and economics before scaling to full industrial volumes.
Hanmi Semiconductor will invest 50 billion won in SpaceX to secure equipment supply for Terafab, a $119 billion semiconductor plant in Austin, Texas, the company said Monday.
Elon Musk is set to speak virtually at ASML's internal tech conference about the Terafab project, a large-scale chip facility for Tesla and SpaceX, with SpaceX IPO pricing expected later on June 11, 2026.
He has described such a merger as the “holy grail” for Musk, as it would allow him to better own and control the broader AI ecosystem. Ives has pointed to existing operational connections between the two companies, including the joint Terafab facility in Austin, as evidence that the groundwork for integration is already being laid.
SpaceX targets AI chip independence with US$119 billion Texas Terafab · Hanmi Semiconductor strengthens ties with India amid Micron facility launch · Hanmi Semiconductor leans into EMI shielding as satellite and 6G demand grows · Musk accelerates SpaceX IPO to build Starlink-based space data centers ·
The latest is the Local Control Protection Act, proposed by Rep. Rob Bresnahan (R-PA), which would somewhat constrain data centre buildouts while enhancing community benefits. It’s notable that the Rep. comes from Pennsylvania which was once very gung-ho about data centres even as little back as a year ago. Musk, ASML, Terafab. Elon Musk is expected to appear at an ASML event after confirmations last month that he is in discussion with the Dutch chipmaking firm over Terafab.
TrendingJensen Huang SuperAI AI Search NTN Convergence Inference Era AI Advanced Packaging · Trending · SUBSCRIBE · CONNECT WITH US · Home Tech Semiconductors · Sherri Wang, DIGITIMES, Taipei Jun 12, 2026, 11:22 0 · Credit: AFP · Elon Musk's planned Terafab chipmaking project has taken an early equipment-sourcing step, with South Korean equipment maker HPSP reportedly receiving a purchase order for high-pressure hydrogen annealing equipment.
The interchangeable chipset is a big deal here because it's how the company aims to address market challenges that could effectively hold back the project. SpaceX previously reported, as shared by Tom's Hardware, that it couldn't supply enough chips for this very same orbital project, which is part of a joint venture with Tesla and its TeraFab solution.
SpaceX recently secured a property tax exemption for a planned $55 billion AI and semiconductor facility — dubbed Terafab — in Grimes County, further north of Austin, signaling a long-term commitment to building a technology and aerospace ...
The applications call for creation of 4,234 jobs and tout benefits for the state through the project's long-term economic impact and tax revenue. Grimes County residents oveflow a hearing last week in Grimes County on SpaceX's proposed Terafab chipmaking plant.
The two firms and Intel are partnering on Terafab to design, build, and scale up a new set of AI microchips for use in Tesla’s Optimus robots and trucks, as well as SpaceX’s planned orbital data centers.