ASML warns Terafab hinges on EUV supply

Christophe Fouquet has held direct talks with Elon Musk about Terafab, but ASML’s bigger concern is whether it can meet another wave of lithography demand. The proposed Texas fab could intensify competition for the machines behind advanced chip production.

ASML CEO Christophe Fouquet has confirmed direct talks with Elon Musk about Terafab, the proposed semiconductor project tied to SpaceX in Grimes County, Texas. Reuters reported on May 20, 2026, that Fouquet described Musk as “very serious,” while cautioning that new projects are only an opportunity if ASML is not supply-constrained.

Terafab is positioned as a major attempt to secure chip capacity for satellites, robotics, vehicles and AI systems. CNBC reported in May that Texas filings described an initial $55 billion semiconductor facility, with Intel also reported as a manufacturing partner. The project would enter a crowded queue already shaped by TSMC’s Arizona expansion, Samsung’s push at 2nm and Intel’s effort to prove its next process roadmap.

ASML reported first-quarter 2026 net sales of 8.8 billion euros and projected full-year 2026 sales between 36 billion and 40 billion euros, underscoring strong demand for its lithography tools. But EUV systems are complex, factory-sized machines assembled through long supplier chains, and High-NA EUV is even harder to scale. If Terafab moves from filings and talks to construction, ASML may have to balance Musk’s ambitions against customers that have planned around EUV allocations for years.

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