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Musk's staff reaches out to suppliers for Terafab project, Bloomberg News reports

Published by Global Banking & Finance Review

Posted on April 16, 2026

2 min read

· Last updated: April 16, 2026

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Musk's staff reaches out to suppliers for Terafab project, Bloomberg News reports
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April 15 (Reuters) - Elon Musk's staff have reached out to chip industry suppliers including Applied Materials, Tokyo Electron and Lam Research for his Terafab AI chip complex project with SpaceX and

Musk's staff reaches out to suppliers for Terafab project, Bloomberg News reports

Elon Musk's Terafab AI Chip Complex: Supplier Outreach and Project Details

Supplier Engagement and Industry Partnerships

April 15 (Reuters) - Elon Musk's staff have reached out to chip industry suppliers for his Terafab AI chip complex project with SpaceX and Tesla, Bloomberg News reported on Wednesday. 

The team has approached companies including Applied Materials, Tokyo Electron and Lam Research, and has asked chip manufacturing partner Samsung Electronics Co for support, the report said, citing people familiar with the matter.

Requested Equipment and Supplier Responses

Staff have sought price quotes and delivery times for an array of chipmaking gear, Bloomberg said, adding that in the past few weeks, they’ve contacted makers of photomasks, substrates, etchers, depositors, cleaning devices, testers and other tools.

Project Timeline and Speed of Execution

The goal is to begin silicon manufacturing by 2029 and then scale up, Bloomberg added. 

Musk's representatives have asked for speedy price estimates while providing minimal information about the products, and Musk wants to move at "light speed," according to the report. 

Verification and Industry Response

Reuters could not immediately verify the report. Tesla, SpaceX, Applied Materials, Tokyo Electron, Lam Research and Samsung Electronics did not immediately respond to requests for comment. 

Terafab Project Launch and Location

Musk launched Terafab in March, and Intel last week said it would join the project to make processors powering the tech billionaire's robotics and data center ambitions.

The project will be built on the Tesla campus in eastern Travis County, Austin, Texas. 

(Reporting by Chandni Shah in Bengaluru; Editing by Sonia Cheema)

Key Takeaways

  • Elon Musk’s Terafab project, co-led by Tesla, SpaceX, and xAI, targets building a $20–25 billion chip fabrication complex in Austin to produce ~1 terawatt of AI compute per year (electrek.co).
  • Suppliers approached (Applied Materials, Tokyo Electron, Lam Research) are top providers of semiconductor fabrication equipment, materials, and process support (pr.tsmc.com).
  • Intel has already joined the Terafab initiative, pledging its design, fabrication, and packaging expertise to help accelerate the project (forbes.com)

References

Frequently Asked Questions

What is the Terafab AI chip project?
The Terafab AI chip project is a chip complex initiative involving SpaceX and Tesla led by Elon Musk.
Which companies have been contacted for the Terafab project?
Suppliers including Applied Materials, Tokyo Electron, and Lam Research have been approached.
Who reported the news about the Terafab chip project?
Bloomberg News reported on the Terafab AI chip project outreach.
Could Reuters verify the Bloomberg report on Terafab?
Reuters could not immediately verify the Bloomberg report.

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