Musk's semiconductor project Terafab has contacted about 10 Korean companies
According to South Korean media THE ELEC, Tesla and SpaceX, under Elon Musk, are reaching out to South Korean materials, components, and equipment companies for the semiconductor manufacturing project Terafab. Some companies have already signed non-disclosure agreements and are discussing supply categories. From October 13 to 15, relevant personnel visited about 10 South Korean company booths at Semicon West 2026 in San Francisco to confirm products and capacities and propose follow-up discussions, many of which have been ongoing for several months.
ENF Technology, Asflow, and G&G Intech are making initial contacts, involving process materials, piping parts and valves, and wastewater reuse equipment, respectively. Mico's cleaning subsidiary Komico signed a tripartite non-disclosure agreement with Tesla and SpaceX about a month ago to discuss cleaning services for the Texas R&D pilot line. Unisem signed a non-disclosure agreement regarding environmental protection equipment such as exhaust gas treatment, while Dongjin Semichem is negotiating around the Texas diluent factory and materials like phosphoric acid. Hanmi Semiconductor is discussing thermal compression bonding equipment, HPSP will supply a high-pressure hydrogen annealing device to the R&D line, and testing socket company ISC is exchanging samples and design information.
Terafab is located in Texas and was jointly announced for promotion by Tesla, SpaceX, and xAI in March of this year. The independent legal entity and equity structure have not yet been disclosed. The goal is to reach a monthly production of 1 million wafers within 10 years, with an initial investment of $16.8 billion and the hiring of over 3,000 people. SpaceX signed a tax reduction contract with Texas earlier this month and has begun construction. The industry expects the initial facility, which will produce 100,000 wafers per month, to be completed before 2030. Initial uses include Tesla's autonomous driving and robotics chips, as well as SpaceX's satellite and space data center chips.