Musk targets 2028 for volume output at Terafab chip venture

Elon Musk said Terafab, the chipmaking venture owned by SpaceX and Tesla, is working toward volume production in 2028, Reuters reported on Oct 21. Volume production means making chips in commercial quantities, past the trial stage.

Musk also said ASML and other equipment suppliers are moving faster to deliver chipmaking tools to Terafab, Bloomberg reported. ASML is the Dutch maker of the lithography machines used to print circuits on silicon wafers.

A potential new customer for toolmakers

For investors in chip stocks, the remarks point to a possible new large customer for chipmaking equipment, and possibly a new chipmaker competing for supply. Musk gave no figure for the size of the orders, and no supplier has detailed what it is shipping to the project or when.

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Intel gained, but less than its sector

Intel closed at US$92.96 on Oct 21, up 1.39% from the previous session. Barron’s linked the rise to Musk’s comments, which it described as a signal that Terafab is making progress. What part, if any, Intel plays in Terafab is not clear.

The gain came on a day of broad strength in US chip shares. The PHLX Semiconductor Index (SOX), a gauge of US-listed chip stocks, closed at 11,505.56, up 1.97%. Intel’s advance trailed that of the index.

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Information only, not investment advice.