SpaceX and Tesla's Terafab targets volume chip output by 2028, Musk says

what happened

According to Reuters, the chip joint venture between SpaceX and Tesla, called Terafab, is aiming for volume production by the third quarter of 2028. Elon Musk said so on a SpaceX conference call on Tuesday. He acknowledged the dates are very aggressive and may not be met. Internally, the company aims for a first test chip using SRAM circuits to work around May or June of next year at its research facility in Austin.

During the call, an analyst asked whether SpaceX had ordered extreme ultraviolet lithography machines from ASML. Musk did not answer directly, instead thanking suppliers for speeding up equipment deliveries. Reuters notes that cutting-edge logic factories in the United States can take three or more years to build. Intel said in April it would join the project, but the companies have not disclosed how the collaboration will work.

why it matters

The key market question is equipment supply: the most advanced chips from Nvidia and AMD depend on ASML's EUV machines, and Applied Materials and KLA also supply tools. If the timeline slips, expectations for demand at these equipment and chip companies could shift. For now, the news is a plan rather than a confirmed production schedule.

market impact

Semiconductors and equipment: Terafab's timing affects demand expectations for ASML, Nvidia and AMD.

tags

instruments