Terafab to Receive First ASML EUV Scanner in Mid-2027, Report Says

First EUV Scanner Arrives Mid-2027

Elon Musk's Terafab project will reportedly receive its first EUV lithography tool from ASML in mid-2027, according to Tim Culpan, who cited sources with knowledge of the matter. However, the cutting-edge scanner could sit idle for some time, as the shell of Tesla's development fab near Austin is not expected to be completed until late 2027, with equipment moves beginning later that year, SemiAnalysis reports.

Tesla broke ground on the research fab on the north campus of Giga Texas in April. SemiAnalysis expects the building to be finished in 15 months, followed by six months of equipment installation, after which the team can begin experimenting with chip production to prepare for the Terafab volume fab phase 1.

Intel 14A Process at the Core

The projected delivery of a conventional EUV system indicates that Terafab's first-generation efforts will rely on traditional equipment, despite Musk's praise for free electron laser light sources. Terafab is set to use Intel's 14A manufacturing technology, which employs both existing Low-NA EUV scanners and next-generation High-NA EUV machines.

Using lithography systems with unconventional and largely untested light sources would require substantial process modifications, extensive equipment qualification, and potential changes to photomasks and photoresists, complicating the transfer of Intel's 14A technology and delaying the production ramp.

Grimes County Site Taking Shape

SpaceX announced Grimes County as the Terafab location in early August 2026. Drone footage published by Joe Tegtmeyer in mid-September showed foundation excavation and rebar cage installation, suggesting structural construction had begun by early September. SemiAnalysis projects Terafab Grimes phase 1 will be built in 20 months, equipped in 17 months, and ramped to volume in six months, with operation starting in late 2029 and volume production by mid-2030.

Notably, SpaceX reportedly ordered semiconductor manufacturing equipment in April 2026, months before the public location announcement, making the mid-2028 equipment installation forecast plausible given long lead times for advanced chipmaking tools.

Positioning Against Intel and TSMC

Intel plans risk production with its 14A process in the second half of 2027 and high-volume manufacturing in the second half of 2028, putting its ramp at least 1.5 years ahead of Terafab Grimes Phase 1. TSMC intends to start volume production of its A12 process, a 1.2nm-class node with second-generation nanosheet GAA transistors and backside power delivery, in late 2029, while Intel is close to unveiling its 14A-P node. Since Terafab will likely serve only SpaceX, Tesla, and xAI, a slightly less advanced node is not expected to be a major problem for the company.

Sources: Tom's Hardware