Musk Asks Suppliers to Move at ‘Light Speed’ on Terafab Plan - Bloomberg

Elon Musk’s team has quietly started lining up the machinery and materials for “Terafab,” the joint chipmaking venture between Tesla and SpaceX. In recent weeks they’ve asked Applied Materials, Tokyo Electron and Lam Research for price quotes and delivery schedules. The gear list spans photomask writers, silicon substrates, etchers, depositors, wafer cleaners and electrical testers—essential tools for next-generation AI and automotive chips. People familiar with the discussions say Musk’s lieutenants pressed suppliers to move “at light speed.” That sense of urgency reflects Musk’s goal to shortcut the usual five- to ten-year timeline for building a state-of-the-art fabrication plant. He hopes bringing chip production in-house will ease supply bottlenecks for Tesla’s self-driving computers and SpaceX’s Starlink terminals. Insiders caution the project faces steep hurdles. Chip fabs require ultra-clean environments, custom chemical processes and billions in capital investment. Even top-tier foundries like TSMC and Samsung have spent years refining their tool chains and securing reliable sources of photoresist and specialty gases. Musk’s team will need to lock down long lead-time items such as extreme ultraviolet (EUV) lithography gear, which only a handful of companies can supply. Still, Musk’s track record of rapid execution at Tesla Gigafactories and reusable rockets has suppliers bracing for fast turnaround. Quotes and lead-time commitments are expected in the coming weeks. If Terafab can accelerate its build-out without skimping on quality controls, it could reshape how Silicon Valley sources its most critical component.