Musk Courts ASML Ahead of SpaceX IPO as $55 Billion Terafab Needs $400 Million EUV Tools
Updated
Updated · CNBC · Jun 11
Musk Courts ASML Ahead of SpaceX IPO as $55 Billion Terafab Needs $400 Million EUV Tools
3 articles · Updated · CNBC · Jun 11
Summary
Elon Musk spoke virtually to ASML employees at the Dutch chip-equipment maker's annual technology conference, highlighting chip manufacturing as central to SpaceX and Tesla before SpaceX's planned record IPO.
ASML is the only supplier of the roughly $400 million EUV lithography machines needed for leading-edge AI chips, making it a critical partner for Musk's planned Texas chip plant, Terafab.
Terafab, unveiled in March, is expected to cost $55 billion to $119 billion and would supply chips for Tesla and SpaceX, whose compute needs are rising after deals with Google and Anthropic.
SpaceX won Texas tax incentives for the project last week despite local opposition, while some ASML employees also objected to Musk's appearance as clashing with the company's neutral profile and values.
With a $122B chip plant, is a Tesla-SpaceX merger now inevitable to fund Musk's vision?
Can Musk's private chip empire challenge nations and reshape global tech power?
Can Musk's Texas 'Terafab' truly power a data center of a million satellites orbiting Earth?
Inside Terafab: Elon Musk’s $119B Bid for 1 Terawatt of AI Compute and the Global EUV Supply Crunch
Overview
Elon Musk is urgently working to secure advanced EUV lithography machines from ASML, which are essential for producing the cutting-edge semiconductors needed for his massive Terafab project. Terafab, planned for Grimes County, Texas, aims to deliver unprecedented AI computing power and comes with a projected cost of $55 billion, potentially rising to $119 billion as it expands. Recently, SpaceX secured tax incentives for the facility despite local opposition. The success of Terafab depends on obtaining these critical ASML machines, highlighting the project's high stakes and its central role in Musk's vision for advanced chip manufacturing.