This table shows the four proof points behind the stock’s re-rating: CHIPS Act support, Tesla’s 14A deal, Apple’s U.S. chip signal, and rising Taiwan risk. Apple would not be the first outside customer to give Intel’s foundry effort credibility. Tesla already emerged as a major early name tied to Intel’s 14A process through the Terafab project, which helped show that Intel’s manufacturing platform could attract outside demand.
The week’s most powerful catalyst came from Elon Musk, who appeared by video at ASML’s own technology conference to pitch the Terafab project, a vertically integrated semiconductor venture involving Tesla, SpaceX and xAI, with Intel contributing its 14A process technology. A Texas?based fab is slated to start with $55 billion in investment and could eventually absorb as much as $119 billion. Musk’s message was unequivocal: ASML is the indispensable supplier, because it is the world’s sole produc
British semiconductor giant to operate at former 3M campus · SpaceX campus here could become bigger than Tesla gigafactory · Musk-linked entity buys likely Terafab site near College Station
Additionally, Musk’s two companies are already deeply intertwined through shared semiconductor fabrication at their joint TERAFAB facility in Austin, cross-company supply chain transactions, and Tesla’s $2 billion investment in xAI prior to the SpaceX-xAI merger.
Wedbush said the recently announced joint Terafab facility between Tesla and SpaceX further strengthens the case by creating operational overlap. Ives framed the potential combination as part of Musk's broader push to control more of the AI ecosystem.
On top of this, Tesla is part of the Terafab joint venture with SpaceX to build a massive semiconductor facility that will produce chips for both companies, a move that some think could foreshadow a Tesla/SpaceX merger.
Chips are also a key AI industry ... on space data centers: "Semiconductor production ... is a 'universal' constraint on all chip deployment, whether deployed on Earth or in Space ... Elon Musk is clearly well aware of this constraint, and it is the impetus behind his Terafab ...
The two companies are increasingly running like divisions of the same conglomerate. Terafab, their joint semiconductor plant on the Giga Texas campus, is being built to produce chips for both Tesla’s AI ambitions and SpaceX satellites.
“This represents MediaTek’s strategic window,” Kuo stated. He emphasized that sustained success hinges on MediaTek capitalizing on Taiwan’s robust hardware manufacturing ecosystem and its collaboration with Terafab, while acknowledging the initiative “currently lacks definitive timeline clarity.”
“This is what we’re going to ... in space AI computing power by the end of next year. Ideally, we’d then scale up by an order of magnitude each year—reaching 10 gigawatts annualized in two and a half years, and perhaps 100 gigawatts in three and a half years. Then, depending on global chip manufacturing progress and TeraFab’s development, ...
Drone footage (May 27, 2026) confirms steel structure rising at Tesla's dedicated Optimus humanoid robot factory on Giga Texas North Campus. Full breakdown: 10 million units/year target (27,000/day), 4,000+ ft building alongside Terafab AI chip factory, Fremont pilot line starting July/August 2026 (internal deployment only), Texas high-volume production targeting summer 2027, and the three monumental challenges — manufacturing, AI, and supply chain.
Not to mention all the blue-collar and middle-management jobs in around the SpaceX Starbase outside Brownsville, Texas, his Tesla gigafactory in Bastrop, Texas and his Terafab plant near College Station and other companies all together employing around 150,00 people (plus all the people selling food, car, clothing etcetera to those workers).
Elon Musk, CEO of SpaceX,appeared at ASML's annual technology conference shortly before SpaceX's IPOto unveil thesemiconductor manufacturing project 'Terafab,' initially valued at $55 billion (potentially scaling up to $119 billion).explained.
Musk announced in February that SpaceX would acquire xAI, a step in his plan to launch solar-powered, satellite-based data centers to run future AI models. In May, SpaceX announced plans to invest $55 billion to build a "Terafab" semiconductor factory in Texas, producing chips for artificial intelligence as well as robotics.
In May, SpaceX announced plans to invest $55 billion to build a "Terafab" semiconductor factory in Texas, producing chips for AI and robotics.
In neighboring Grimes County, SpaceX is developing a chipmaking facility that the company has said will support its satellite and spacecraft operations, underscoring the growing demand for advanced chip technologies across multiple industries. The proposed facility, which SpaceX is calling Terafab, is still in its early stages.
The Texas Comptroller’s office issued formal recommendations to approve all eight tax incentive applications tied to the proposed TeraFab facility in Grimes County.
They also explained that they expect ... a joint Terafab chipmaking facility. ... "Musk wants to own and control more of the AI ecosystem and step by step the holy grail could be combining SpaceX and Tesla in some way to give the connected tissue between both disruptive tech stalwarts looking to lead the AI Revolution," Ives and team ...
And he has already revealed how he intends to build this superchip. In March 2026, Tesla announced plans to collaborate with SpaceX and xAI (now part of SpaceX) to build TeraFab, billed as "the largest chip manufacturing facility ever."