Elon Musk addressed employees of ASML, Europe's most valuable company, on Thursday as SpaceX advances plans for its Terafab chip manufacturing plant in Texas. Musk called in virtually to ASML's annual technology conference for a fireside chat with CEO Christophe Fouquet, with the event confirmed by the company. The appearance underscores the strategic importance of ASML as the sole global provider of extreme ultraviolet lithography machines required for advanced chip production, which SpaceX will need for its Terafab facility to manufacture chips for Tesla and SpaceX's AI operations.
ASML Provides Critical EUV Technology for Terafab
ASML, based in the Netherlands, is the only company in the world that makes the $400 million machine needed for an advanced chip manufacturing step known as extreme ultraviolet lithography. Without ASML, the world's three leading chip manufacturers—Taiwan Semiconductor, Samsung and Intel—can't make leading edge chips for AI. EUV machines will be a necessity inside Terafab. Musk wrote in a post on X that "ASML should be treasured and supported. It is arguably the greatest company in Europe."
Musk officially announced plans for Terafab in March to make chips for Tesla and SpaceX, which owns artificial intelligence lab xAI. SpaceX signed recent deals to provide compute capacity to Google and Anthropic, increasing the company's need for chips for its data centers. If the full buildout comes to fruition, Terafab will cost between $55 billion and $119 billion.
SpaceX Secures Tax Incentives in Grimes County
Last week, SpaceX secured tax incentives for the project during a contentious public hearing in Grimes County, Texas, despite opposition from nearby residents. The approval came as part of a reinvestment zone tied to the Terafab chip facility.
ASML Employees Voice Opposition to Musk Appearance
At ASML, Musk's remarks received pushback from some employees. On the company's internal communication platform, a group of employees wrote, ahead of the event, that Musk's appearance did not align with ASML's values, citing controversial involvement in U.S. politics and what some described as "Nazi sympathies," according to Dutch newspaper Eindhovens Dagblad. As a key supplier to all the most advanced chip manufacturers, ASML is known for keeping a neutral profile so it can work well alongside a complex global network of customers.
ASML is expanding its footprint in its headquarters of Eindhoven, where a new campus is expected to open in 2028.
FAQ
What did Elon Musk discuss with ASML employees on Thursday?
Musk called in virtually to ASML's annual technology conference for a fireside chat with CEO Christophe Fouquet. The appearance was related to SpaceX's Terafab chip manufacturing plant in Texas, for which ASML will be a likely supplier of extreme ultraviolet lithography machines.
How much will SpaceX's Terafab project cost?
If the full buildout comes to fruition, Terafab will cost between $55 billion and $119 billion. Last week, SpaceX secured tax incentives for the project during a public hearing in Grimes County, Texas.
Why is ASML important to SpaceX's chip manufacturing plans?
ASML is the only company in the world that makes the $400 million machine needed for extreme ultraviolet lithography, an advanced chip manufacturing step. Without ASML's EUV machines, SpaceX cannot produce the leading edge chips required for Tesla and SpaceX's AI operations at the Terafab facility.
