During a virtual appearance at ASML's annual technology conference, Elon Musk emphasized the importance of chip manufacturing for his ventures, particularly SpaceX's upcoming Terafab project aimed at producing chips for both SpaceX and Tesla.
ASML, the only manufacturer of the $400 million extreme ultraviolet lithography machines necessary for advanced chip production, is positioned to be a key supplier for Terafab. Musk's comments come as SpaceX seeks to diversify its operations beyond rockets into chip manufacturing, with the project estimated to cost between $55 billion and $119 billion.
Recently, SpaceX secured tax incentives for Terafab despite local opposition. However, Musk's involvement has sparked controversy among ASML employees, some of whom expressed concerns about his alignment with the company's values. ASML is also expanding its operations in Eindhoven, with a new campus set to open in 2028, further solidifying its role in the global chip manufacturing landscape