Skip to main content
This section contains press releases and other materials from third parties (including paid content). The Globe and Mail has not reviewed this content. Please see disclaimer.

Musk Moving at “Light Speed” to Sign Up Suppliers for $25B Terafab Chip Dream

Tipranks - Tipranks - Fri Apr 17, 6:14AM CDT

Elon Musk is working at “light speed” to sign up chip suppliers to fulifill his $25B Terafab semiconductor dream.

Claim 30% Off TipRanks

Speedy Price Estimates

According to a report on Bloomberg, Musk’s team is reaching out to a number of chip industry suppliers such as Applied Materials (AMAT), Tokyo Electron (TOELY) and Lam Research Corporation (LRCX).

It is reported that employees working for the Tesla (TSLA) and SpaceX joint venture have, over the last seven days, sought price quotes and delivery times for a range of chipmaking equipment such as photomasks, substrates, etchers, depositors, cleaning devices, testers and other tools.

It is understood that Musk’s team has asked suppliers for speedy price estimates while providing minimal information about the products to be made. This included asking a supplier on a holiday Friday for an estimate to be delivered the following Monday. Musk wants to move at “light speed.”

The news comes only days after Intel Corporation (INTC) said it would be joining the Terafab initiative. However, the share price of Applied Materials, down 0.39% in pre-market trading, Tokyo Electron off 1.8%, and Lam Research down 0.29% failed to respond well.

Musk Wants Greater Control

Musk announced on March 21, 2026, that Tesla, SpaceX and xAI will jointly build a new chip-manufacturing facility, Terafab, in Austin, Texas. The Terafab project aims to produce custom silicon tailored to Tesla’s autonomous driving, Robotaxi and Optimus programs, as well as SpaceX’s satellite needs. By bringing advanced logic, memory, and packaging in-house, the companies seek to achieve greater control over critical component timelines and volumes.

Terafab, the $25 billion joint venture, aims to consolidate every stage of semiconductor production under one roof. This includes chip design, lithography, fabrication, packaging, and testing. The new facility in Austin targets 2-nanometer process technology, the most advanced node now entering commercial production, putting Terafab in direct competition with rivals such as TSMC (TSM) and Nvidia (NVDA).

Is TSLA a Good Stock to Buy Now?

On TipRanks, TSLA has a Hold consensus based on 13 Buy, 11 Hold and 6 Sell ratings. Its highest price target is $600. TSLA stock’s consensus price target is $401.13, implying a 2.34% upside.

Disclaimer & DisclosureReport an Issue

This article contains syndicated content. We have not reviewed, approved, or endorsed the content, and may receive compensation for placement of the content on this site. For more information please view the Barchart Disclosure Policy here.

All market data (will open in new tab) is provided by Barchart Solutions. Copyright © 2026.

Information is provided 'as is' and solely for informational purposes, not for trading purposes or advice. For exchange delays and terms of use, please read disclaimer (will open in new tab).