Elon Musk is about to do something that would have sounded absurd five years ago: pitch a semiconductor megafactory to the company that makes the machines no one else on Earth can replicate.
Musk will appear virtually at ASML’s Technology Conference on June 12, 2026, to lay out his vision for Terafab, an ambitious chip manufacturing facility estimated to cost around $55 billion. The timing is not accidental. SpaceX is barreling toward an IPO with projected valuations between $1.75 trillion and $1.8 trillion.
ASML shares climbed more than 3% in premarket trading on June 11 after the company confirmed Musk’s participation.
What Terafab actually is, and why it matters
Tesla needs custom chips for its AI training infrastructure, autonomous driving systems, and its Optimus robot program. SpaceX needs radiation-hardened processors for Starlink satellites and rocket avionics. xAI, Musk’s artificial intelligence venture, needs massive quantities of compute hardware. Right now, all of that silicon comes from external foundries, primarily TSMC in Taiwan.
