TSMC2026-10-04 02:26:06Lu Hsing-Chih says a TSMC-led Texas TeraFab would effectively be a TSMC fabTaiwan Semiconductor Manufacturing Co. (TSMC) is reportedly evaluating a potential project in Texas tied to Elon Musk’s TeraFab initiative, and semiconductor analyst Lu Hsing-Chih argues that the structure of any deal matters more than the label attached to it. If TSMC provides capital, process technology, and takes charge of construction and operations, Lu said the venture would in substance amount to a TSMC-run dedicated foundry, with SpaceX and Tesla serving as anchor customers rather than operating as independent chipmakers. The report cites Tim Culpan, founder of independent media outlet Culpium and a former Bloomberg columnist, as saying TSMC is exploring cooperation with TeraFab. Musk responded that the talks are still preliminary, saying, "just discussions, but something may come of it." TeraFab’s Texas buildout is already moving through early-stage site work. The Austin pilot research facility broke ground in April 2026, while the main site in Grimes County carries a planned first-phase investment of about $16.8 billion. Initial land preparation and road access work are underway, with formal construction listed for Dec. 1, 2026. The first phase is targeted for completion in 2028, while SpaceX expects limited operations as early as late 2027.20
TSMC2026-10-03 13:34:48TSMC Said to Be Exploring Potential Cooperation With Terafab ProjectChainCatcher reported that Taiwan Semiconductor Manufacturing Co. is said to be exploring possible cooperation with the Terafab project, which was jointly funded and launched by SpaceX and Tesla. The report added that TSMC is also considering Terafab as an important customer for its future wafer plant in Texas. Elon Musk responded that the matter remains at the discussion stage for now, but said there could be progress. The brief did not provide additional details on the scope, timing, or structure of any potential cooperation.20
Elon Musk2026-10-03 08:43:24Musk says Terafab-TSMC tie-up remains at discussion stage, with possible outcomeElon Musk said on X that reports about a partnership between his chip company Terafab and Taiwan Semiconductor Manufacturing Co. are still at an early stage. According to Musk, the two sides have only held discussions so far, though he added that those talks may yet lead to something. Musk had earlier said the Terafab project would be jointly operated by Tesla and SpaceX and based in Austin. He described the project as targeting 1 terawatt of computing capacity per year, with most of that capacity required for space-related use. The project’s initial investment was put at $16.8 billion. His latest comments stop short of confirming any formal agreement with TSMC, but they do indicate that contact between the parties has taken place.20
SpaceX2026-09-03 03:02:56Bernstein keeps Outperform on SpaceX, ties $248 target to launch scale and reusabilityBernstein said in a Sept. 1 research note that SpaceX’s long-term value depends on whether it can build large-scale, reusable orbital launch capacity around 2028. The note reviewed six developments from August: a new Starship base in southern Louisiana, updated recovery plans, an in-house industrial gas turbine blade foundry near Bastrop, the completion of the Cursor acquisition, a newly announced Terafab site in Grimes County, and continued expansion of Starlink’s aviation business. Bernstein maintained an Outperform rating and a $248 price target, which the report said implies 73% upside from the current share price. The firm’s core view is that Louisiana launch infrastructure and second-stage recovery are the two most important pillars behind SpaceX’s next phase, as the company shifts from being seen mainly as a rocket maker toward a broader infrastructure platform. The article, published by TechFlowPost and written by Rita, said those capabilities would support orbital data centers, power build-outs, chip manufacturing ambitions, and higher-value AI monetization paths tied to Grok and Cursor.1320
Goldman Sachs2026-08-24 04:11:01Goldman Sachs Raises 2026-2028 WFE Forecasts, Citing DRAM and Advanced Foundry DemandGoldman Sachs said in an Aug. 23 research note that it has lifted its forecasts for wafer front-end equipment, or WFE, for 2026 through 2028 to $150 billion, $218 billion and $281 billion, respectively. The new figures are 6%, 17% and 35% above its previous estimates. The bank now sees year-over-year growth for those three years at 36%, 45% and 29%, compared with earlier projections of 28%, 32% and 12%. According to the note, DRAM and advanced-process foundry spending are the main near-term drivers behind the revision. In DRAM, Goldman Sachs raised its capital expenditure forecasts for Samsung and SK Hynix by 22% and 19%. It said HBM4 mass production is driving demand for tools such as etch and deposition equipment. On the foundry side, the bank increased its annual capital spending estimate for TSMC by $8 billion and said the N2 process has entered the mass-production ramp stage. Goldman Sachs added that NAND and logic/other, including Terafab, are expected to contribute in the medium term. It also said roughly $16.8 billion in initial-stage Terafab equipment spending committed by SpaceX and Tesla has been incorporated into its WFE forecast.1390
Elon Musk2026-08-12 12:25:08Musk’s TeraFab fuels new scrutiny of FEL as a possible lithography challengerElon Musk’s TeraFab chip manufacturing plan has moved from a compute-supply story into a lithography debate after speculation that the project may be aligned with a free-electron laser, or FEL, approach to extreme ultraviolet light sources. The discussion gained momentum after Musk posted 「FEL FTW」 on social media, a remark that many read as support for the idea. The core issue is whether FEL can attack one of the most entrenched positions in the semiconductor equipment business: ASML’s dominance in EUV lithography. The article lays out why that question is drawing attention now. ASML’s laser-produced plasma, or LPP, light source enabled commercial EUV, but its limits are becoming more visible as the industry pushes toward 2 nm and below. Conversion efficiency remains low, tin debris contaminates costly mirrors, and power requirements keep rising. FEL backers argue their approach avoids plasma conversion, removes tin-droplet contamination, and could deliver much higher EUV output. xLight, which raised an oversubscribed $40 million Series B in July last year and later brought in former Intel CEO Pat Gelsinger as executive chairman, says its system could sharply raise fab productivity. Even so, the broader field remains mixed. ASML is still expanding EUV and DUV output, advancing High-NA EUV, and posting rising sales and profit. At the same time, alternative paths including X-ray lithography, nanoimprint lithography, and electron-beam direct write are also developing, each with different trade-offs in cost, throughput, and manufacturability.5540
Elon Musk2026-08-09 05:35:07Musk reply fuels fresh talk over FEL as an alternative EUV lithography light sourceA discussion sparked by TeraFab-related information and a reply from Elon Musk has revived attention on free-electron laser, or FEL, technology as a possible alternative to conventional extreme ultraviolet, or EUV, lithography light sources. The source article stresses that the claim remains speculative and does not confirm Musk’s actual plans, but argues the technical route is worth examining on its own terms. It lays out how FEL systems work, starting with high-energy electron beams from particle accelerators, then using periodic magnetic structures known as undulators to generate tunable, coherent, high-intensity light across a range that can theoretically extend from soft X-rays through EUV and beyond. The piece also points to U.S. startup xLight as a notable supporter of this direction and notes that former Intel CEO Pat Gelsinger is now xLight’s executive chairman. According to the article, xLight says its FEL source can deliver up to four times the EUV power of current LPP systems, lower wafer costs by about 50%, support as many as 20 ASML systems, and operate for up to 30 years. At the same time, the article makes clear that stronger source physics does not automatically translate into better manufacturing readiness. FEL systems still face major hurdles in size, cost, stability, uptime, and integration with lithography optics, leaving today’s engineered EUV sources more suitable for high-volume fabs at this stage.1840
Elon Musk2026-08-07 01:37:06Musk-backed Terafab to build Texas chip megafactory with $16.8 billion first phaseTexas Governor officials and SpaceX have formally announced that Terafab, a chip superfactory led by Elon Musk, will be built in Grimes County, Texas, with first-phase capital spending of $16.8 billion. The project is designed as a highly integrated semiconductor manufacturing base and is expected to create 3,000 jobs once fully built out. To meet heavy power demand tied to artificial intelligence and advanced manufacturing, the site plans to develop its own natural gas power plant and a large battery storage array using Tesla Megapack technology. Riley Trettel, who oversees energy and data center development at SpaceX, said the approach is intended to reduce reliance on the regional grid. Official disclosures also show the project has received a $30 million grant from the state of Texas. The facility is planned at 100 million square feet across roughly 3,000 acres, while SpaceX currently controls more than 13,000 acres of land. Intel has confirmed its participation and is set to provide wafer fabrication and advanced packaging support. Terafab is targeting annual AI compute output of 1 terawatt and may ultimately reach an initial investment total of as much as $55 billion, according to a filing submitted in May.1870
