Published by Global Banking & Finance Review®
Posted on April 16, 2026
2 min readLast updated: April 16, 2026
Add as preferred source on GoogleMusk’s team has contacted chip-industry suppliers—Applied Materials, Tokyo Electron, and Lam Research—for input or tools to support the Terafab AI chip complex, per Bloomberg. The project aims to internalize high-volume AI silicon production.
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.
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.
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.
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.
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)
The Terafab AI chip project is a chip complex initiative involving SpaceX and Tesla led by Elon Musk.
Suppliers including Applied Materials, Tokyo Electron, and Lam Research have been approached.
Bloomberg News reported on the Terafab AI chip project outreach.
Reuters could not immediately verify the Bloomberg report.
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