Musk Pushes Chip Factory Timeline

The schedule is tight.

During SpaceX's Q3 2026 earnings call on X on October 20, Elon Musk reported that ASML and other key equipment suppliers are speeding up shipments. This acceleration supports the joint manufacturing project between Tesla and SpaceX. The move is intended to help meet a target for volume chip production at the primary facility in Gibbons Creek, Texas.

Musk set the date for the third or fourth quarter of 2028. He described this timeline as highly aspirational and noted it carries "big error bars." He expressed gratitude for the cooperation from suppliers. "These are very aggressive dates, and we're very appreciative of ASML and all of our other suppliers in accelerating equipment deliveries in order to achieve this outcome," said Musk, who leads both companies.

The project is designed to produce one terawatt of AI computing power per year. It plans to fabricate logic, memory, and advanced packaging components in one location. The facility will use extreme ultraviolet lithography systems based on Intel's 14A node technology. Intel joined the venture in April 2026 to assist with this development. Other equipment providers for the site include Applied Materials, Lam Research, KLA Corporation, and Tokyo Electron.

Musk also discussed plans for artificial intelligence compute capacity. He expects 2.5 to 3 gigawatts to be active by the end of 2026. He added that he is confident about bringing an additional 10 gigawatts online in 2027. To support this, SpaceX and xAI are securing Nvidia's next-generation Vera Rubin architecture. A cluster containing 440,000 of these GPUs is planned for the second quarter of 2027.

Some industry experts are skeptical about the scale of the project. Research firm Gartner estimates the total global AI-optimized data center capacity is roughly 44 gigawatts as of late 2026. This figure represents 4.4% of the planned annual output for the Texas facility.