Elon Musk's Terafab semiconductor venture is expected to take delivery of its first extreme ultraviolet lithography tool from ASML in mid-2027, according to an analysis by SemiAnalysis. The equipment would arrive well before the fab is ready to use it, since Tesla only broke ground on a research fab on the north campus of Giga Texas near Austin this past April. SemiAnalysis expects that building to be finished in 15 months, with another six months needed to install equipment and production tools before wafer processing can begin.
Holding an ASML Twinscan NXE EUV system in storage for months might look like costly idle time, but the report indicates the delay is not the significant financial burden for Terafab that it would be for a traditional chipmaker. The order also shows that while Musk has praised free electron laser light sources for lithography, Terafab's first-generation effort will rely on conventional equipment. That aligns with the company's plan to use Intel's 14A manufacturing technology, which will employ both existing Low-NA EUV scanners and next-generation High-NA EUV machines.
Choosing unconventional, largely untested light sources would require major changes to the manufacturing process, extensive equipment qualification and possibly new photomasks and photoresists. Those steps would complicate the transfer of Intel's 14A technology and push back Terafab's production ramp. Using standard lithography tools does not rule out other departures from Intel's tool set, though the report says it is too early to guess what Terafab engineers might change in the fab configuration.
SpaceX announced in early August 2026 that it had selected Grimes County for Terafab. Drone footage published by Joe Tegtmeyer in mid-September showed foundation excavation and rebar cage installation at the northwestern part of the site, suggesting contractors had begun structural construction by early September, although the purpose of the foundation is not known. SemiAnalysis reports that Terafab Grimes phase 1 will be built in 20 months, equipped in 17 months and ramped to volume in six months, with analysts projecting operation in late 2029 and volume by mid-2030.
SpaceX reportedly ordered semiconductor manufacturing equipment in April 2026, months before it officially announced the Grimes County location, indicating a commitment to the plans before the public groundbreaking. That timing also makes the mid-2028 equipment installation forecast plausible given the long lead times for advanced semiconductor tools. Intel plans risk production on its 14A (1.4nm-class) process in the second half of 2027 and high-volume manufacturing in the second half of 2028, putting its ramp at least 1.5 years ahead of Terafab Grimes Phase 1.
Terafab will therefore get a proven advanced technology, presumably with decent yields, but not the absolute best node available at the time. TSMC intends to start volume production on its A12 process, a 1.2nm-class node with second-generation nanosheet GAA transistors and backside power delivery, in late 2029, when Intel will be close to unveiling its 14A-P node. Because Terafab will likely serve only SpaceX, Tesla and xAI, a slightly less advanced node is not expected to be a major problem, with the higher costs of a more sophisticated technology offset by in-house production.
More hardware news from TechManNews.
