Tesla, SpaceX Talk to About 10 Korean Suppliers for Terafab

Why Korea, and What It Means for Chip Supply

The Elec said Tesla and SpaceX do not buy from Chinese suppliers, which narrows the field. An unnamed Korean equipment maker told the outlet that Japanese suppliers are expensive and Korea is a good option. Another industry official said Terafab is seeking prices below those offered by Chinese vendors. Most of the Korean companies already supply Tesla or SpaceX, and former Intel staff overseeing Terafab have brought in Intel's existing suppliers, including ENF Technology, Asflow, ISC and HPSP.

For the chip supply chain, the signal is that a new buyer is lining up consumables and tools well ahead of any output. Terafab targets 1 million wafers a month within 10 years, with initial investment estimated at $16.8 billion and more than 3,000 jobs expected, The Elec reported. Industry observers quoted by the outlet expect a first phase of 100,000 wafers a month to be completed before 2030. Overseas suppliers are also involved: Fujifilm holds regular meetings with the Terafab procurement team, and Lam Research and Applied Materials are understood to have dedicated Terafab teams, The Elec said.

What Is Still Unconfirmed About Terafab

Musk said this week that ASML is speeding tool deliveries and that he is aiming for volume output in 2028, as Voltgrid reported. The Korean supplier talks are the other half of that build-out: lithography tools are only one line item in a fab's bill of materials.

The supplier list, the NDAs and the product scope come from The Elec's sources at the Korean companies. Neither Tesla, SpaceX nor the suppliers named have confirmed the talks in the report, and apart from the single HPSP annealing system no purchase order, price or delivery date has been disclosed. The Elec also said Tesla is building a process pilot fab at its Austin Gigafactory and is working with Intel on logic, while talks with TSMC continue.