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Elon Musk’s Terafab will reportedly receive its first EUV lithography tool from ASML in mid-2027, according to Tim Culpan citing sources with knowledge of the matter. However, SemiAnalysis notes that the shell of the development facility on Giga Texas’ north campus near Austin will not be completed until late 2027. Consequently, the scanner may sit idle for some time while tools are moved in later that year.

The project timeline involves significant construction and preparation phases. Tesla broke ground in April, with SemiAnalysis expecting the building to take 15 months to finish. This is followed by an estimated six months to install equipment before wafer processing experiments begin. While storing a conventional EUV system for several months might seem costly compared to traditional chipmakers, it is not considered a significant financial problem for Terafab given its specific needs.

Terafab will rely on Intel’s 14A manufacturing technology, utilizing both existing Low-NA and next-generation High-NA EUV machines rather than Elon Musk’s previously praised free electron laser light sources. This decision avoids the need for substantial process modifications or untested equipment qualification required by unconventional light sources. SpaceX selected Grimes County in early August 2026, with foundation work visible by mid-September. Projected completion is set for late 2029, ramping to volume production by mid-2030.

Although Terafab will use a proven technology, it will not be the absolute best production node available at the time, as TSMC intends to start volume production with its A12 process in late 2029. Intel plans to begin risk production with its 14A process in the second half of 2027 and high-volume manufacturing in the second half of 2028. Despite using a slightly less advanced node, Terafab will likely exclusively serve SpaceX, Tesla, and xAI, where cost savings from in-house production may offset potential increases in manufacturing complexity.