Musk says ASML and other suppliers are expediting shipments to Terafab, targeting volume chip production by Q3-Q4 2028
During an earnings call, Elon Musk stated that ASML and other key semiconductor equipment suppliers are accelerating deliveries to the Terafab facility to support its highly aspirational 2028 production target.
Elon Musk, CEO of Tesla and SpaceX, stated during a live broadcast of SpaceX's Q3 2026 earnings call on October 20 that Dutch lithography giant ASML and other critical semiconductor equipment suppliers are expediting shipments to the "Terafab" project. This joint venture between Tesla and SpaceX aims to build a vertically integrated chip manufacturing facility in Gibbons Creek, Texas.
Musk indicated that the company targets volume chip production at the primary facility by the third or fourth quarter of 2028, but emphasized that this timeline is "highly aspirational" and carries "big error bars." For context, he noted that xAI and SpaceX plan to achieve 13 gigawatts of AI computing capacity by the end of 2027, including a massive training cluster of 440,000 NVIDIA "Vera Rubin" GPUs.
Terafab aims to manufacture chips equivalent to 1 terawatt (TW) of AI computing power per year, covering logic, memory, and advanced packaging. The facility will utilize Intel's 14A manufacturing process technology and ASML's extreme ultraviolet (EUV) lithography systems. While Musk claims suppliers are cooperating to accelerate deliveries, industry analysts remain skeptical about the feasibility of such massive capacity expansion and timelines, noting that total global AI-optimized data center capacity is currently estimated at roughly 44 GW.