Elon Musk’s Terafab Reaches Out to Top Chip Equipment Suppliers

TLDR

• Musk’s Terafab team contacted Applied Materials, Tokyo Electron, and Lam Research for price quotes
• Terafab is a joint venture between Tesla and SpaceX aimed at making both companies self-sufficient in AI chips
• Intel has joined the project as of last week
• The facility aims to produce 1 terawatt of computing power per year
• Musk’s team reportedly requested quotes urgently, even during a holiday, pushing for rapid delivery

Elon Musk’s Terafab project has begun reaching out to major chipmaking equipment suppliers to gather price quotes and delivery timelines. The outreach was first reported by Bloomberg on April 15, 2026.

The suppliers contacted include Applied Materials, Tokyo Electron, and Lam Research. Samsung Electronics was also approached, according to separate reporting.

Applied Materials, Inc., AMAT

Terafab is structured as a joint venture between Tesla and SpaceX. Musk announced the project in March 2026.

The goal of the facility is to make Tesla, SpaceX, and xAI fully self-sufficient in AI chip production. Musk says the facility will handle chip design, fabrication, lithography, masking, and packaging all in one place.

The project is targeting 1 terawatt of computing power per year. That figure would exceed the current combined output of most global chipmakers.

Intel confirmed it would join the Terafab initiative last week. That makes Intel one of the first major established chipmakers to formally sign on to the project.

Musk’s Team Pushing for Speed

Reports indicate Musk’s representatives have been requesting quotes with a sense of urgency. In some cases, they reached out to suppliers during a holiday and asked for delivery by the following week.

Suppliers were often given minimal details about what products would actually be manufactured. That has raised questions about how much of the project’s plans have been fully worked out.

The aggressive pace reflects Musk’s stated goal of moving the project at what he has called “lightning speed.”

What Terafab Is Designed to Do

The chips produced at Terafab are intended to power Musk’s AI, robotics, and autonomous driving projects. That covers work happening across Tesla, SpaceX, and his AI company xAI.

By building its own chip manufacturing capacity, Musk is aiming to reduce reliance on outside suppliers like Nvidia and TSMC.

The facility would cover the full chip production pipeline under one roof. That level of vertical integration would be unusual in the semiconductor industry.

No confirmed location for Terafab has been publicly announced. The project’s timeline also remains unclear given how early the supplier outreach appears to be.

Applied Materials and Lam Research are among the largest suppliers of chip manufacturing equipment in the world. Their involvement at the quote stage suggests Terafab is in early planning rather than construction.

Tokyo Electron is a major Japanese chip equipment maker and a key supplier to foundries worldwide.

Intel joining the project last week is the most recent confirmed development in the Terafab story.

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