--- title: "Last major news before SpaceX IPO pricing! It is reported that Musk will parachute into the ASML closed-door summit to unveil the \"Chip Empire\" Terafab" type: "News" locale: "en" url: "https://longbridge.com/en/news/289464405.md" description: "On the eve of the SpaceX IPO pricing, Musk will attend the ASML closed-door technology conference via video link to explain the \"Terafab\" chip factory plan to core employees. The project is promoted by SpaceX, Tesla, and xAI, with an initial budget of $55 billion, located in Austin, Texas, aiming to create a full-stack vertically integrated semiconductor manufacturing facility covering design to testing, and has obtained Intel's 14A process authorization" datetime: "2026-06-11T12:21:02.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/289464405.md) - [en](https://longbridge.com/en/news/289464405.md) - [zh-HK](https://longbridge.com/zh-HK/news/289464405.md) --- # Last major news before SpaceX IPO pricing! It is reported that Musk will parachute into the ASML closed-door summit to unveil the "Chip Empire" Terafab According to reports, Elon Musk, CEO of Tesla (TSLA.US) and SpaceX (SPCX.US), will secretly attend ASML's (ASML.US) internal annual technology conference via video link on Thursday. In this closed-door meeting, which is not open to the public, Musk will have a fireside chat with ASML's new CEO Christophe Fouquet, where he will detail the latest progress and vision of his ambitious semiconductor manufacturing project, "Terafab," to thousands of ASML's core employees for the first time. It is noteworthy that this summit marks Musk's official entry into chip manufacturing, coinciding with one of the largest milestones in global technology history: According to insiders, the highly anticipated initial public offering (IPO) of SpaceX is also expected to finalize its pricing later on Thursday. ## Unveiling Terafab: A $55 Billion Super "Self-Developed Chip" Ambition Musk's "Terafab" project was initially promoted by SpaceX, Tesla, and xAI in March 2026. The latest Wall Street assessment shows that the initial capital expenditure budget for the project has soared to an astonishing $55 billion, making it one of the most expensive semiconductor factory plans in U.S. history. If all subsequent expansion phases are pushed forward, total capital expenditure could reach as high as $119 billion. The project has submitted a property tax exemption application to the government of Grimes County, Texas, while Intel will provide 14A process technology licensing for Terafab. **The Ambition of Vertical Integration** According to project plans, Terafab will be located near Tesla's headquarters and Gigafactory in Austin, Texas, aiming to be a "vertically integrated" chip factory that covers the entire process of chip design, inference, and manufacturing of storage chips, packaging, and testing. All processes will be completed in a closed loop within the same facility, and Musk claims that "the speed of iterative improvement could be an order of magnitude faster than any other model in the world." ASML CEO Fouquet confirmed last month in an interview that he has had direct communication with Musk regarding the Terafab project, and Musk's attitude towards building the largest chip manufacturing base in history is "very serious." Fouquet also warned that the surge in AI demand will lead to long-term capacity shortages in the global semiconductor industry, and large projects like Terafab will continue to squeeze the capacity supply of equipment manufacturers. According to Musk's outline, Terafab will ultimately independently produce logic and storage chips with a 2-nanometer (2nm) process and more advanced processes, aiming to completely eliminate dependence on external foundries like TSMC (TSM.US). Terafab differs from traditional wafer foundry models. Musk is attempting to reshape the chip supply chain, and his aggressive pace is fundamentally different from the traditional semiconductor industry. ![794132d1feae81cd009f6fa0bf9a73c1.png](https://imageproxy.pbkrs.com/https://img.zhitongcaijing.com/image/20260611/1781178317808130.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg) **According to its business blueprint, the customized silicon wafers produced by Terafab will primarily supply two major end markets** Space and Starlink Network: Providing radiation-resistant, high-performance core processors for SpaceX's Mars spacecraft, next-generation launch vehicles, and Starlink satellite constellations. AI and Humanoid Robots: Fully empowering Tesla's Full Self-Driving (FSD) system, as well as the Optimus humanoid robot, which Musk has high hopes for. Musk's ultimate goal is to enable this project to support up to 1 Terawatt of computing power annually. To advance this project, Musk has previously confirmed that SpaceX will collaborate with Intel. Earlier this year, Terafab began constructing an initial R&D base in Texas, focusing on the critical self-developed semiconductor manufacturing "Lithography Masks" to achieve ultra-fast prototyping of logic and memory chips under one roof. ## ASML's "Double-Edged Sword": Future Huge Orders vs Internal Employee Resistance For ASML, currently valued at approximately $668.4 billion and firmly seated at the top of European tech stocks, Musk is undoubtedly a major player. ASML is the only company in the world capable of manufacturing extreme ultraviolet lithography equipment, with major global chip manufacturers such as TSMC, Samsung, SK Hynix, and Intel placing orders with it. If Terafab proceeds as planned, it will become a core procurement partner for ASML's system products, potentially surpassing its largest existing customers. As ASML nearly monopolizes the global 100% extreme ultraviolet (EUV) lithography machine market, each piece of equipment sells for between $200 million and $350 million. If Terafab transitions from its grand blueprint to the actual large-scale equipment procurement phase, ASML's order book will experience a historic surge. ![76969530cbbab2a6ca4afdb374d4b7e8.png](https://imageproxy.pbkrs.com/https://img.zhitongcaijing.com/image/20260611/1781179207893882.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg) Terafab aims to target the 2-nanometer advanced process, planning an annual production capacity of approximately 100 billion to 200 billion AI and memory chips, equivalent to a monthly wafer input of 100,000 pieces, with the first batch of mass-produced chips being Tesla AI5, scheduled for production in 2027. ASML's extreme ultraviolet lithography equipment is essential for advanced process chip production, and Terafab needs to procure ASML equipment on a large scale to support 2-nanometer capacity, which is the most direct commercial motivation for the dialogue between Musk and ASML. **ASML Stock Price Data and Market Size** On June 6, Musk posted on X platform that ASML "can be said to be the greatest company in Europe" and should be "cherished and supported." ASML is the highest-valued publicly traded company in Europe, with its stock price having risen approximately 58% since 2026. Bank of America Securities raised its target price from €1,710 to €1,921 on June 4, maintaining a buy rating, expecting EUV capacity to exceed 90 units by the end of 2027 Goldman Sachs has also raised its target price to €1,600. ![99fb0b1c56489fc4441e379a8304cac1.png](https://imageproxy.pbkrs.com/https://img.zhitongcaijing.com/image/20260611/1781178918189280.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg) It is worth noting that if Terafab is fully constructed and achieves a monthly capacity of tens of thousands of wafers, its procurement volume of ASML equipment is likely to surpass that of TSMC, becoming the world's largest single customer of extreme ultraviolet lithography tools. However, a discordant note has emerged within this European giant. Due to the fact that this annual meeting is purely an internal event, some ASML employees have threatened to "boycott" this fireside chat on the company's internal forum due to dissatisfaction with Musk's aggressive public statements and political stance in recent years. Nevertheless, the senior management's emphasis on Musk is evident. An official spokesperson for ASML stated, "Musk and his team are becoming part of a broader semiconductor ecosystem, and many companies, including ASML, will participate in this plan." ## Technical Implementation Reality Wall Street's reaction to Musk's move is complex. Some macro hedge fund managers point out that chip manufacturing is not only "rocket science" but also requires a high level of industrial engineering accumulation. Intel spent years and tens of billions of dollars to gradually understand ASML's High-NA EUV system, and Musk's ambition to fully grasp this highly sensitive supply chain within a year or two is akin to another gamble. **Industry Doubts About Technical Feasibility** Morgan Stanley analysts previously pointed out that even under the most optimistic construction assumptions, Terafab's initial chip output would not be realized until at least mid-2028, which is more than two years away from now. TSMC Chairman and CEO C.C. Wei candidly wished "good luck" to the Terafab project during an interview last week, stating, "For Musk's Terafab, I can only say good luck. It will take a considerable amount of time to achieve." Wei's statement reflects an established foundry giant's judgment that "newcomers" may underestimate the technical barriers, and it also hints at the industry's generally reserved attitude. **Objective Reality of Manufacturing Barriers** Advanced semiconductor fabrication plants typically require a construction cycle of 3 to 5 years and need extremely precise extreme ultraviolet lithography machines, highly specialized engineering teams, stable ultra-pure water and power supplies, as well as a complete set of strict cleanroom management systems. Intel has spent hundreds of billions of dollars and years trying to catch up but has still not fully matched TSMC in process technology. Some analysts have suggested that Terafab may also turn to collaborate with TSMC, Samsung, or Intel, with Tesla funding to secure capacity while the foundry handles manufacturing, bypassing the most challenging manufacturing stages—currently, public information does not rule out this possibility. ## SpaceX IPO Pricing to be Revealed Tonight: Racing Against Terafab's Progress However, it is undeniable that with SpaceX's IPO pricing on the horizon, Musk holds unprecedented capital leverage. If Terafab can overcome yield challenges, the future Tesla and SpaceX will no longer just be software and assembly giants but a sovereign-level entity with the world's most fundamental hardcore technology The global semiconductor industry's ecosystem may be writing the first chapter of a transformation at this very moment. Within hours after Elon Musk concluded his speech at ASML, the pricing for SpaceX's initial public offering (IPO) is also expected to be announced. Reports indicate that the IPO pricing for SpaceX is anticipated to be revealed later in the evening on June 11th, Eastern Time, and it is expected to become one of the largest IPOs in history. The market expects SpaceX's valuation to reach as high as $1.75 trillion, with the IPO aiming to raise up to $75 billion, part of which will be used for the construction of the Terafab project and the deployment of space AI data centers. According to previous reports, the capital expenditure for Terafab was not included in Tesla's capital expenditure budget for 2026, so the scale of fundraising from SpaceX's IPO directly determines whether the first phase of Terafab's construction can proceed as planned. The vast majority of SpaceX's valuation and revenue forecasts are based on the company's ambitious goal of launching up to 1 million satellites and creating orbital data centers in space. Musk previously revealed that in the goal of Terafab to produce 1 terawatt (1 terawatt = 1000 gigawatts) of computing power annually, about 80% will be deployed in space AI computing clusters, while 20% will be used for Tesla vehicles and the ground applications of the Optimus humanoid robot. ## Summary: The Dual Aspects of the "Big AI Computing Power" Narrative From Tesla's perspective, Terafab is the hardware foundation for its transformation from an "automaker" to an "AI company"; from ASML's perspective, Musk's speech is a strategic declaration from one of its largest potential customers. The vision for Terafab is "the most ambitious chip manufacturing plan ever," which Musk sees as "the next step in building a galactic civilization." ASML is the exclusive supplier of the lithography equipment necessary for manufacturing advanced chips, and Musk cannot avoid ASML if he wants to produce 2-nanometer chips to meet the needs of Tesla and SpaceX. For the semiconductor industry, this is not just a strategic narrative of one person or one company, but a choice of direction for capital expenditure in computing power in the AI era—when global cloud service providers and tech giants each take their positions in the chip supply chain, ASML's product delivery schedule has become a barometer for the entire industry's economic cycle ### Related Stocks - [TSL.US](https://longbridge.com/en/quote/TSL.US.md) - [TSLA.US](https://longbridge.com/en/quote/TSLA.US.md) - [INTC.US](https://longbridge.com/en/quote/INTC.US.md) - [04335.HK](https://longbridge.com/en/quote/04335.HK.md) - [ASML.US](https://longbridge.com/en/quote/ASML.US.md) - [TSLQ.US](https://longbridge.com/en/quote/TSLQ.US.md) - [INTW.US](https://longbridge.com/en/quote/INTW.US.md) - [TSLL.US](https://longbridge.com/en/quote/TSLL.US.md) - [TSLR.US](https://longbridge.com/en/quote/TSLR.US.md) - [TSLZ.US](https://longbridge.com/en/quote/TSLZ.US.md) - [TSLS.US](https://longbridge.com/en/quote/TSLS.US.md) - [ASMG.US](https://longbridge.com/en/quote/ASMG.US.md) - [TSDD.US](https://longbridge.com/en/quote/TSDD.US.md) - [TSLG.US](https://longbridge.com/en/quote/TSLG.US.md) - [TSLT.US](https://longbridge.com/en/quote/TSLT.US.md) - [TESL.US](https://longbridge.com/en/quote/TESL.US.md) - [07766.HK](https://longbridge.com/en/quote/07766.HK.md) - [TSLI.US](https://longbridge.com/en/quote/TSLI.US.md) - [TSLO.US](https://longbridge.com/en/quote/TSLO.US.md) - [TSLW.US](https://longbridge.com/en/quote/TSLW.US.md) - [TSLY.US](https://longbridge.com/en/quote/TSLY.US.md) - [TSYY.US](https://longbridge.com/en/quote/TSYY.US.md) - [TYYY.US](https://longbridge.com/en/quote/TYYY.US.md) - [CRSH.US](https://longbridge.com/en/quote/CRSH.US.md) - [09366.HK](https://longbridge.com/en/quote/09366.HK.md) - [07366.HK](https://longbridge.com/en/quote/07366.HK.md) - [SOXL.US](https://longbridge.com/en/quote/SOXL.US.md) ## Related News & Research - [ANALYSIS-Short-sellers to tread carefully as Musk's SpaceX debuts](https://longbridge.com/en/news/289169202.md) - [Short seller Jim Chanos doubts SpaceX valuation, says IPO fueled by 'hopes and dreams'](https://longbridge.com/en/news/289380646.md) - [Musk's Terafab Plans Put ASML In Investor Spotlight](https://longbridge.com/en/news/289463942.md) - [ASML to cut fewer jobs after talks with Dutch unions](https://longbridge.com/en/news/289358466.md) - [Intel's stock could push even higher thanks to this subtle dynamic, BofA says](https://longbridge.com/en/news/289498064.md)