ASML is a Dutch company that is a leading supplier of chip manufacturing equipment, particularly lithography machines used in advanced chip production.

How does this project relate to Tesla (TSLA) stock?

The project aims to secure chip supply for Tesla, potentially reducing supply chain risks and boosting AI capabilities, which could positively impact the stock.

Has the project been agreed upon?

No, the project is still in the discussion phase and no formal agreement has been announced yet.

Elon Musk in Direct Talks with ASML for $119B TeraFab Chip Plant

Elon Musk is in direct talks with ASML (NASDAQ:ASML) to build a $119 billion TeraFab chip manufacturing facility in Texas, according to Reuters. The plant would support Tesla's AI infrastructure expansion. ASML CEO Christophe Fouquet described Musk as 'very serious' about the project.

June 7, 2026

2 min read

Source: Benzinga

Key Numbers

investment

119B

Elon Musk is in direct talks with ASML (NASDAQ:ASML), a leading chip equipment supplier, to build a $119 billion TeraFab chip manufacturing facility in Texas, according to a Reuters report. The proposed plant aims to support the expansion of artificial intelligence infrastructure.

Project Details

The TeraFab facility would be a massive chip manufacturing plant dedicated to meeting Tesla's (NASDAQ:TSLA) growing demand for chips used in AI and autonomous driving systems. ASML CEO Christophe Fouquet described Musk as "very serious" in these talks, indicating the proposal's credibility.

Context

This move comes as Tesla seeks to strengthen its AI capabilities amid rising demand for advanced chips. The project could also reduce Tesla's reliance on external suppliers.

What It Means for Investors

The project is still in the discussion phase, with no formal agreement announced. Investors are closely watching developments, as a successful deal could boost Tesla's AI position and mitigate supply chain risks.

Frequently Asked Questions

The TeraFab project is a proposed $119 billion chip manufacturing facility in Texas by Tesla to support AI infrastructure.

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This article was rewritten in Wrqti's editorial style based on information from the original source above. Content is informational only — not investment advice.