First EUV tool arriving in mid-2027
Elon Musk's semiconductor manufacturing venture Terafab is reportedly set to receive its first EUV (extreme ultraviolet) lithography tool from ASML in mid-2027, according to sources familiar with the matter.
The timing paints an interesting picture: the shell of the company's development fab won't be completed until late 2027, and tools will only begin to be moved in later that year. That means the expensive scanner will sit idle for some time.
Why the long wait?
ASML's Twinscan NXE EUV tools are hard to come by these days. Storing one for months before putting it to use would be a significant financial problem for a traditional chipmaker, but it's not the same burden for Terafab.
Tesla broke ground on its research fab in April this year on the north campus of Giga Texas near Austin. Analysts expect the building to be completed in 15 months, followed by another six months to install equipment and production tools.
Intel 14A technology to be used
Terafab is set to use Intel's 14A manufacturing technology. 14A will use not only existing Low-NA EUV scanners but also next-generation High-NA EUV machines.
While Musk has praised free electron laser (FEL) light sources for lithography tools, the company's first-generation semiconductor production efforts will rely on more traditional equipment. Using unconventional light sources would require substantial modifications to the manufacturing process, extensive equipment qualification, and potentially changes to photomasks and photoresists, which would complicate the transfer of Intel's 14A technology and delay Terafab's production ramp.
Timeline
SpaceX announced it had selected Grimes County for Terafab in early August 2026. Drone footage published in mid-September showed foundation excavation and rebar cage installation at the northwestern part of the site. Analysts project the volume fab will begin operation in late 2029 and ramp to volume by mid-2030.
