Musk is urging chip suppliers to act at 'light speed' for his Terafab AI.
Bloomberg reports that teams from SpaceX and Tesla have contacted Applied Materials, Tokyo Electron, Lam Research, and Samsung to obtain quotes and estimated delivery schedules for chip manufacturing equipment.
Elon Musk's teams have engaged with prominent suppliers in the chip industry, including Applied Materials, Tokyo Electron, and Lam Research, along with Samsung Electronics, a partner in chip manufacturing, as part of Musk’s Terafab initiative, which aims to create an AI chip fabrication facility connected to SpaceX and Tesla.
According to a Bloomberg article referencing sources familiar with the situation, the team is inquiring about prices and delivery times for various chipmaking tools such as photomasks, substrates, etchers, depositors, cleaning equipment, testers, and additional machinery.
Bloomberg notes that the urgency is influenced by Musk’s ambition to operate at "light speed," with staff requesting quick price feedback while sharing little information about the intended products.
The Terafab initiative is seen as a bold endeavor for a fully integrated AI chip manufacturing complex in the U.S. that would enable large-scale silicon production, positioning Musk's companies to directly compete with the established manufacturing landscape led by TSMC, Samsung, and Intel.
This project is part of a larger trend among Musk's companies, including Tesla and SpaceX, which aims to control essential parts of the AI supply chain instead of relying on third-party providers.
Tesla is already developing its own Dojo supercomputer training chips. If the supplier outreach is confirmed, it would indicate that Terafab has progressed from the planning phase to active procurement, although the limited information shared with suppliers complicates assessments of the project's current status.
Published April 16, 2026 - 8:06 am UTC
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Musk is urging chip suppliers to act at 'light speed' for his Terafab AI.
Reports indicate that Musk's teams reached out to Applied Materials, Tokyo Electron, and Lam Research regarding his Terafab AI chip project.