Terafab's chip production timeline moves forward with supplier support

Elon Musk confirmed that ASML and other important semiconductor equipment suppliers are speeding up shipments for the Terafab semiconductor manufacturing plant, supporting his aggressive timeline for the joint megaproject between Tesla and SpaceX. He announced this during a live broadcast of SpaceX's Q3 2026 earnings call on X on October 20. Musk also said that volume chip production is expected at the project's main facility in Gibbons Creek, Texas, by the third or fourth quarter of 2028, noting that the timeline is highly aspirational and has large error margins.

These are very aggressive dates, and we're very appreciative of ASML and all of our other suppliers in accelerating equipment deliveries in order to achieve this outcome, said Musk, CEO of both companies behind Terafab. SpaceX plans to manufacture its first experimental test chip at its research fabrication facility in Austin, Texas, around Q2 2027.

Terafab is a planned multi-billion-dollar, vertically integrated chip factory in Texas, with an ambitious goal of manufacturing 1 terawatt (TW) of AI computing power per year. The facility will fabricate logic, memory, and advanced packaging internal architectures in one place. The project's massive planned output has mandated various collaborations across the semiconductor supply chain. Terafab will utilize traditional extreme ultraviolet (EUV) lithography systems utilizing Intel's 14A manufacturing node technology.

Intel officially joined the Terafab venture in April 2026 to help co-develop and refactor silicon fabrication technology, providing access to its state-of-the-art 14A manufacturing process. ASML, the world's sole commercial supplier of the $400 million EUV lithography systems required for high-volume, leading-edge chip production, is perhaps the project's most critical partner. Terafab's first EUV tool was reportedly slated for delivery in mid-2027, according to unofficial sources.

Musk's announcement says that several of these suppliers are expediting supply to Terafab, even as capacity remains tight across the semiconductor supply chain. The facility, which aims to mitigate future shortfalls of cutting-edge AI processors from external foundries like TSMC, will supply the chips for Musk's xAI clusters, self-driving vehicles, Optimus humanoid robots, and SpaceX's orbital AI data center, as well as the broader AI industry.