00:00Elon Musk is laying out plans for TeraFab, a push to build massive chip manufacturing capacity,
00:05and he wants suppliers moving at, quote, light speed. Bloomberg reporting that TeraFab has been
00:11reaching out across the chip industry, asking for pricing and delivery timelines on key equipment.
00:16That includes Applied Materials, Land Research and Tokyo Electron, according to our sources.
00:22In some cases, suppliers were asked to respond over a holiday weekend.
00:25Musk's team is also offered to pay above the market price if they get priority access.
00:30Now, Musk's argument is that even with partners like TSMC and Samsung, supply won't be enough on top.
00:36Those fabs will max out capacity. So is a Musk chip fab coming soon?
00:41Well, not exactly. There are no confirmed orders yet.
00:45The manufacturing approach is not finalized and the location is still unclear.
00:50The first step is a pilot line that will be at about 3,000 wafers a month.
00:54That's tiny when you compare it to a real leading edge fab.
00:57They're targeting around 2029 to actually start making chips.
01:01There are some other signals worth watching.
01:03TeraFab approached Samsung, which instead of participating, offered a counterpoint.
01:08More capacity at its Texas fab.
01:11At the same time, Musk has been recruiting engineers from across the industry.
01:15That includes TSMC and Samsung.
01:17Bottom line, this is real, but it's still early.
01:21It's undefined and a long way from competing with the incumbents.
Comments