On SpaceX's third-quarter earnings call, CEO Elon Musk said ASML and other major makers of chip tools are speeding up equipment deliveries for Terafab. He added, "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." It is a sign he sees momentum behind a big semiconductor push.
Terafab is Musk's plan to build chips at scale for SpaceX and Tesla. The initiative aims to address a shortage of advanced AI processors and additional semiconductors that current vendors - among them Taiwan Semiconductor Manufacturing Co. - aren't supplying in adequate volumes.
Musk said SpaceX is aiming to hit volume chip production at the Terafab facility in Q3 or Q4 of 2028. Following the update, ASML's American depositary receipts rose up to 2.7% in New York's late Tuesday session, and Applied Materials Inc. - the biggest U.S. chip-equipment company - was also up by more than 2%.
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The plan is explicitly meant to make up for a shortfall from current suppliers such as TSMC, and SpaceX is targeting late-2028 for volume output. Investors marked the update with a pop in equipment names, with ASML and Applied Materials both higher in late trading.
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