Musk Pitches Terafab Chip Factory to ASML on June 11, Eyes Dutch Chipmaker as Key Supplier

According to Quartz, Elon Musk on Thursday (June 11) presented his Terafab chipmaking plans to ASML employees at the company's annual technology conference via video link, positioning the Dutch manufacturer as a critical supplier. ASML is the world's sole supplier of extreme ultraviolet (EUV) lithography equipment, with each unit priced at approximately $400 million—essential technology for Terafab's future production.

Terafab, announced in March, will operate as a joint venture between SpaceX and Tesla to produce chips for both companies. The Texas facility near Gibbons Creek reservoir carries an estimated initial construction cost of $55 billion, with total investment potentially reaching $119 billion upon full expansion. Last week, SpaceX secured 100% property tax exemption from Grimes County, paying $10 million upfront and $20 million annually over 35 years.