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

Mayumi Negishi, Edward Ludlow, Takashi Mochizuki, Ian King
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⚡ Quantum Brief
Elon Musk’s Tesla-SpaceX joint venture is accelerating plans for "Terafab," a high-risk bid to enter advanced chip production, contacting major suppliers like Applied Materials, Tokyo Electron, and Lam Research for equipment quotes. The initiative seeks cutting-edge semiconductor tools, including photomasks, etchers, depositors, and testing devices, with Musk’s team pushing suppliers for rapid delivery timelines to meet aggressive project goals. Terafab represents Musk’s latest moonshot to reduce reliance on third-party chipmakers, potentially integrating AI and quantum-adjacent hardware for Tesla’s robotics and SpaceX’s aerospace systems. Industry insiders describe the effort as "audacious" given the capital-intensive, technically complex nature of modern chip fabrication, where even established players face steep barriers. Suppliers remain cautious but engaged, as Musk’s urgency—demanding "light speed" progress—clashes with the chip industry’s typically deliberate, multi-year development cycles.
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Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the worldAmericas+1 212 318 2000EMEA+44 20 7330 7500Asia Pacific+65 6212 1000Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the worldAmericas+1 212 318 2000EMEA+44 20 7330 7500Asia Pacific+65 6212 1000Elon Musk:Elon MuskElon Musk’s lieutenants have reached out to chip industry suppliers including Applied Materials Inc., Tokyo Electron Ltd. and Lam Research Corp. for his envisioned Terafab, early steps in an audacious and likely arduousBloomberg Terminal attempt to break into the production of cutting-edge chips. Staff working for the joint venture between Tesla Inc. and SpaceX have sought price quotes and delivery times for an array of chipmaking gear, people familiar with the matter said. In past weeks, they’ve contacted makers of photomasks, substrates, etchers, depositors, cleaning devices, testers and other tools, according to the people, who asked not to be named disclosing private discussions.

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Source: Bloomberg Technology

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