Musk Announces $55 Billion Chip Plan on Eve of SpaceX IPO, ASML Becomes Key Supplier, Shares Jump 9.53%

ASML is the world's only manufacturer of extreme ultraviolet (EUV) lithography machines, with each unit costing up to $400 million. This April, ASML CEO Christophe Fouquet confirmed that he had held direct talks with Elon Musk regarding the Terafab project, stating that Musk is "very serious about the project." Just days before the conference, Musk posted on the X platform: "ASML should be cherished and supported; it is arguably Europe's greatest company."

However, there was no consensus within ASML regarding Musk's appearance. According to the Dutch newspaper Eindhovens Dagblad, some employees expressed dissatisfaction on the internal network, arguing that Musk's strong stances are at odds with the neutral values the company has long maintained.

In a fireside chat with Fukai, Musk highlighted Terafab, a mega chip factory located in Texas. The project is being jointly developed by SpaceX, Tesla ( TSLA) and AI lab xAI, with an initial investment of $55 billion and potential total investment reaching $119 billion. The plant plans to use EUV lithography equipment exclusively supplied by ASML to produce 100 billion to 200 billion AI chips annually using a 2nm process. Musk stated bluntly: "Without ASML, TSMC ( TSM ), Samsung, and Intel ( INTC) would be unable to produce cutting-edge AI chips. Terafab cannot exist without EUV lithography machines."

In April this year, Intel officially joined the Terafab project, planning to license its next-generation 14A process node to Musk's companies. Additionally, SpaceX employees are engaging with equipment manufacturers such as Applied Materials ( AMAT ), Tokyo Electron, and others to solicit quotes and delivery lead times for equipment such as etching and deposition machines. Meanwhile, SpaceX recently signed compute power supply agreements with Google and Anthropic, as its data centers face an increasingly urgent demand for chips.

Meanwhile, SpaceX's initial public offering has entered its final pricing stage at $135 per share, with approximately 555.6 million shares being issued to raise about $75 billion, corresponding to a valuation of $1.77 trillion. This would surpass Saudi Aramco's 2019 record to become the world's largest IPO. Trading under the ticker SPCX, the stock will list on the Nasdaq this Friday.

There is a clear divergence in market opinion regarding its valuation. Morningstar analysts believe the fair value is only about half of the offering price, whereas Wedbush is bullish on the AI outlook, estimating a more than 80% probability of a future merger between SpaceX and Tesla.

Analysts noted that if Terafab proceeds as planned, ASML is expected to secure one of its largest single customers in history.

This content was translated using AI and reviewed for clarity. It is for informational purposes only.