Tesla and SpaceX are building Terafab in Texas, with Musk aiming to establish a facility capable of processing 1 million wafers per month within 10 years. Intel has joined as a technology partner, and TSMC has confirmed discussions on potential cooperation. Procurement officials from Tesla and SpaceX visited Korean suppliers at SEMICON West. Whether Terafab will materialize as planned remains uncertain.
On October 21, during GTC Berlin, Nvidia announced several multi-billion-dollar deals with six major supply chain partners — Ibiden, Unimicron, Samsung Electro-Mechanics, SPIL, Amkor and KYEC — across substrates, advanced packaging, semiconductor testing and optical engines, to expand production capacity and reserve capacity for its AI accelerators; expanded supply is to be available from 2027 through 2028, with commitments and production roadmaps stretching through 2028. For substrates, Nvidia plans to secure 2.5x dedicated substrate capacity over the next three years: it earlier signed a deal to provide a multibillion-dollar capacity reservation advance to support Ibiden's Ono Plant in Japan (targeting 3x the plant's current capacity); the Samsung Electro-Mechanics deal will support facility upgrades and new plants in Busan and Sejong, with Nvidia projected to account for a significant portion of its output by 2028; a capacity reservation agreement with Unimicron supports its substrate expansion in Taiwan, expected to start providing capacity by Q2 2027 and reach full capacity by mid-2028. For co-packaged optics, Nvidia signed with SPIL to expand optical engine production capacity 15x (1,400%) by mid-2027, with plans to double again by the end of 2028. With Amkor, Nvidia targets a more-than-300% increase in interposer wafer capacity by the end of 2028 through advanced packaging expansion in South Korea; Amkor confirmed the deal is worth $1.3 billion, bringing Nvidia's total investment across Amkor's Arizona and South Korea facilities to $3 billion. For testing, on October 13 Nvidia signed a deal to pay KYEC $1.1 billion to reserve testing capacity at KYEC's new $1.4 billion U.S. facility (high-volume production slated to begin in April 2027; Singapore high-volume production expected to begin February 2027), with testing capacity expected to double from calendar 2026 to 2027; KYEC currently handles nearly all of Nvidia's chip testing. Per its August 2026 disclosures, Nvidia had accumulated $279 billion in outstanding supply and manufacturing-capacity commitments by July 2026. All expansion figures are announced plans and targets, not yet realized.
substratesadvanced packaginginterposer wafersNvidia, Ibiden and 7 totalTom's HardwareCapacity Change
ZDNet Korea reported on October 23, citing industry sources, that Samsung Electronics has ordered additional equipment to fill the remaining space at its first foundry fab in Taylor, Texas, a move that would lift the plant's 2nm capacity to 20,000 wafers per month in the second half of 2027. This is a planned capacity expansion, and the source does not state the cause for the expansion.
TSMC is scouting Texas for possible new US capacity, even as it builds out its advanced-process fabs in Arizona. Chairman C.C. Wei confirmed that a team has been sent to Texas to assess expansion opportunities. TSMC is also discussing cooperation with Elon Musk's Terafab, on the condition that it keeps operational control. Together, the moves could shift TSMC's US strategy from expanding existing sites to choosing new locations and exploring capacity partnerships. The source does not state the cause.
possible new US capacityTSMCDigiTimes AsiaCapacity Change
Texas Instruments, in its third-quarter earnings call, reported strong revenue growth driven by strong demand across its industrial, automotive, and data center businesses. The company said it is facing a tight supply environment for its chips, and brought up its ramping of production and testing capacity, including through its new Malaysia back-end facility. The source provides no specific revenue figures, dates, or quantified details of the capacity expansion.
industrial chipsautomotive chipsdata center chipsTexas InstrumentsDigiTimes AsiaCapacity Change
Taiwan's Minister of Economic Affairs Ming-Hsin Kung recently revealed in an interview with foreign media that Taiwan plans to collaborate with the Taiwan Electrical and Electronic Manufacturers' Association (TEEMA) to construct multiple US industrial parks, with Texas selected as the inaugural location to help Taiwanese AI and semiconductor suppliers build a local manufacturing footprint. This is a plan; the source does not state investment amounts, timelines, or named suppliers, and no cause is given.
Taiwan Electrical and Electronic Manufacturers' Association (TEEMA)DigiTimes AsiaCapacity Change
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Taiwan Electrical and Electronic Manufacturers' Association (TEEMA)
On 21 October 2026 (Wednesday), Intel announced that it had started installing production tools at its Fab 62 in Arizona, with the fab on track for mass production by late 2028; however, the company has not disclosed when it intends to begin high-volume production, the planned wafer processing capacity, the capital expenditures required to complete the facility, and it has not officially assigned Intel 14A to Fab 62 (Fab 62 remains unassigned, while Fab 52 has been designated for Intel 18A). Per Intel's manufacturing roadmap disclosed earlier this year, Fab 62 will be able to make chips on 18A, 18A-P, and 14A nodes. Intel also confirmed that it has integrated High-NA EUV lithography into high-volume manufacturing (HVM), used to produce select tiles for Panther Lake CPUs at its D1X fab in Oregon; Intel has not explicitly confirmed whether High-NA EUV scanners are currently used to produce the same circuits as Low-NA EUV machines. In addition, construction workers recently installed the first major structural truss at the first fab of the Ohio One complex in New Albany, Ohio, but Intel did not provide an updated construction schedule, disclose when the first fab is expected to begin operations, or reveal which process technology it will use or its estimated capacity. The source does not state the cause (this is a capacity expansion progress update, not a price or disruption event).
Elon Musk said on October 20, during a live broadcast of SpaceX's Q3 2026 earnings call on X, that ASML and other critical semiconductor equipment suppliers have expedited shipments to the Terafab semiconductor manufacturing facility, a joint megaproject between Tesla and SpaceX, to support his aggressive timeline. He said the company is targeting volume chip production at Terafab's primary facility in Gibbons Creek, Texas, by the third or fourth quarter of 2028, emphasizing that the timeline is highly aspirational and carries 'big error bars'; SpaceX plans to manufacture its first experimental test chip at its research fabrication facility in Austin, Texas, around Q2 2027. Terafab will use traditional extreme ultraviolet (EUV) lithography systems utilizing Intel's 14A manufacturing node; Intel officially joined the Terafab venture in April 2026 to co-develop and refactor silicon fabrication technology. According to unofficial sources, Terafab's first EUV tool was reportedly slated for delivery in mid-2027, and it remains unclear if this is the expedited timeline Musk referred to. Other major suppliers include Applied Materials, Lam Research, and KLA Corporation, as well as Japan's Tokyo Electron; Tesla and SpaceX are also in talks with about 10 South Korean equipment makers, including Hanmi Semiconductor (advanced packaging equipment) and HPSP (high-pressure hydrogen annealing equipment). Musk also outlined AI compute goals: 2.5 to 3 GW of computing capacity active by the end of 2026, a total of 13 GW by the end of 2027, and plans to bring a 440,000-GPU Nvidia 'Vera Rubin' training cluster online by the end of Q2 2027. The event remains a plan/target and volume production has not been achieved.
EUV lithography systemslogic chipsmemoryASML, Tesla and 11 totalTom's HardwareCapacity Change
On October 21, 2026, Apple announced an expansion of its American Manufacturing Program: Qnity Electronics, based in Delaware (it joined the programme in March), will produce in the US the advanced films used in the variable aperture of the iPhone 18 Pro's main camera. Apple also signed Pennsylvania-based Perryman Company to supply titanium for the foldable iPhone Duo, with a commitment of up to USD 100 million over three years. According to Apple, nearly 100 components in its newest iPhones now come from American companies, and suppliers in more than a dozen states provide US-made components for the iPhone Duo and iPhone 18 Pro. Among them: Broadcom is expanding and modernising its Fort Collins, Colorado facility under a USD 1.5 billion investment announced in July, with a multi-year agreement covering more than 15 billion US-made chips; Corning's Harrodsburg, Kentucky site will produce all cover glass for the iPhone and Apple Watch sold worldwide by the end of 2026; Coherent supplies VCSEL lasers for Face ID from Sherman, Texas; TSMC's Arizona fab is set to produce more than 100 million chips for Apple in 2026, with construction of the north campus under way; Amkor broke ground on its first high-volume packaging and test facility in Peoria, Arizona in September 2025 and began construction of the building shell this year, with Apple as one of its first customers and the first two phases expected to employ more than 3,500 people. Apple also opened an Advanced Manufacturing Center in Houston in August, where it will start manufacturing the Mac mini this year in the same facility where it builds AI servers. The programme is part of Apple's USD 600 billion, four-year commitment to US manufacturing and innovation.
variable aperture camera filmstitaniumRF componentsApple, Qnity Electronics and 8 totalEvertiqCapacity Change
Hanwha Systems has begun full-scale mass production of multifunction displays (MFDs) for South Korea’s domestically developed KF-21 supersonic fighter jet. According to industry sources on Oct. 21, Hanwha Systems has completed development of the KF-21 MFD and started mass production. A contract covering the initial production batch of 40 aircraft has been signed, with the overall procurement program potentially expanding to 120 aircraft, including 80 in subsequent production batches. In November 2024, Hanwha Systems signed a contract worth approximately 61.6 billion won with Korea Aerospace Industries (KAI) to supply four types of avionics equipment for the KF-21. The contract covers MFDs, mission computers (MC), audio communication control systems (ACCS) and infrared search and track (IRST) systems. The contract runs through December 2026.
multifunction displays (MFDs)Hanwha Systems, Korea Aerospace Industries (KAI)The ElecCapacity Change
Japan's Fujifilm is expanding its extreme ultraviolet (EUV) photoresist production capacity to deepen cooperation with Samsung Electronics. Brian O'Donnellley, president of Fujifilm Electronic Materials USA, said the company is producing EUV photoresists in Pyeongtaek and, although it has not yet entered full-scale mass production, some EUV PR products have passed qualification tests at major customers. Fujifilm has expanded EUV PR production facilities in Shizuoka, Japan (its primary hub for advanced photoresist development and production) and Pyeongtaek, South Korea (near Samsung, selected for its most advanced products); EUV PR production and inspection equipment at both locations began operating in October 2025. The source does not state when full-scale mass production in Pyeongtaek will begin. The company cited artificial intelligence (AI) driving demand for materials used in processes at 2 nanometers and below, and expansion of advanced manufacturing processes increasing demand for ArF and EUV photoresists as the stated reason. Separately, Fujifilm is expanding its CMP slurry production facility near Samsung's Cheonan campus, planning to increase production capacity by approximately 30%, with additional facilities scheduled to begin operating in the first half of 2027; Fujifilm holds the largest global market share in CMP slurries for copper interconnects. The company also operates a facility in Carrollton, Texas near Samsung's Taylor plant and is considering various options to expand its manufacturing presence in South Korea, where it currently has two production facilities.
According to Reuters, Elon Musk said during a SpaceX conference call that his semiconductor manufacturing venture, Terafab, is targeting volume production in 3Q28, though he acknowledged that either 3Q or 4Q remains possible, describing the timeline as "very aggressive" given that advanced logic chip fabs in the U.S. typically take three years or more to build. Before volume production, Terafab aims to produce its first functional test chip using SRAM circuits around May or June 2027 at its Austin research facility. Equipment supply remains a key challenge, particularly from ASML and U.S. suppliers such as Applied Materials and KLA; asked whether SpaceX had ordered EUV lithography systems from ASML, Musk did not answer directly but thanked ASML and other suppliers for accelerating equipment deliveries. Per Reuters, ASML expects demand to outstrip supply through 2028 despite plans to expand EUV production capacity. According to The Elec, Tesla and SpaceX are in talks with South Korean semiconductor materials, components, and equipment suppliers to establish Terafab's supply chain, with several companies signing NDAs; HPSP and Hanmi Semiconductor remain the only two Korean equipment suppliers publicly linked to Terafab, and Terafab is reportedly seeking prices even lower than those offered by Chinese competitors. On manufacturing partners, TSMC Chairman and CEO C.C. Wei confirmed ongoing discussions but stressed that any fab involving TSMC must be operated by the company, contrasting with Musk's October 7 remarks that his companies would build and operate Terafab, potentially allowing TSMC to sublease space without an operational role; meanwhile, per Reuters citing Bloomberg, Intel CEO Lip-Bu Tan said the company would remain involved in Terafab.
SRAM test chipadvanced logic chipsEUV lithography systemsTerafab, Tesla and 10 totalTrendForceCapacity Change
According to commentary, Samsung Electronics' 2nm mass-production capability at its Taylor, Texas fab has become critical to its efforts to close the gap with TSMC, while Tesla's AI5 chip delivery schedule and Broadcom's potential 2nm orders hang in the balance. The company's ability to achieve competitive yields and stable output at the US facility will determine whether it can turn major customer orders into a broader foundry comeback. The source does not state the cause, and these statements are commentary rather than realized yield or order outcomes.
2nm processSamsung Electronics, TSMC and 4 totalDigiTimes AsiaCapacity Change
Samsung will reportedly break ground on its second chip fab in Taylor, Texas, this November, with mass production targeted for 2030. DigiTimes, citing South Korea's The Guru, reports that Taylor Fab 2 will span roughly 2.7 million square feet. Samsung also appears to have confirmed the timing at an October 15 event near the site, where Jonathan Taylor of Samsung Austin Semiconductor said construction should start early next month and that Fab 2 will be one and a half times bigger than Fab One. The process for Fab 2 has not been disclosed yet. As background, the first Taylor fab has slipped well past its original 2024 target and seems to be on track this time, with installed tools starting to run processes during staged qualification; Fab 1 uses EUV lithography for Samsung's 2 nm process, with operations planned by the end of 2026 and volume production in 2027. Its best-known customer is Tesla, which signed a $16.5 billion deal running through 2033 covering the AI6 chip, and Samsung is also set to build Tesla's AI5 on 2 nm in Texas. How orders will be split between the two fabs is unknown. Samsung plans to invest over $37 billion across Central Texas, backed by up to $4.745 billion in CHIPS Act funding. Given how long Fab 1 took, the source notes it is reasonable to expect the 2030 target will depend heavily on demand.
On the recent investor call, TSMC Chairman and CEO Dr. C.C. Wei said assessed demand exceeds available supply, and the company is responding with new factories, equipment conversions, productivity improvements and flexible manufacturing across technology generations. Third-quarter revenue reached $46.7 billion, and TSMC forecasts approximately 44% revenue growth for 2026 in U.S. dollar terms (a forecast, not an achieved result). Wei described nearly 20 fabrication facilities under development worldwide, including leading-edge manufacturing and advanced packaging projects, and the company expects annual capacity for its N2 technology family to more than double in 2027 (an expectation). Wei said TSMC is expanding 3-nanometer production despite its historical practice of avoiding further expansion once a technology generation reaches its targeted scale. TSMC outlined manufacturing plans in Taiwan, Arizona and Japan, alongside preliminary evaluations in Texas; Wei linked U.S. expansion to customer requests and said manufacturing location can affect pricing. He also acknowledged some shortage in backend packaging capacity, mentioned cooperation with GlobalFoundries, and noted that company teams are examining U.S. data-center construction and electricity availability, since chip deployment depends on functioning infrastructure. Wei also warned that rising component prices and economic uncertainty are challenging consumers and price-sensitive markets.
Taiwan plans to set up industrial parks in the US to help its supplier ecosystem reach customers such as Nvidia and other local hardware manufacturers, starting with a complex in Texas, a state that has become a hotspot of expansion plans among Taiwanese tech companies. This is a plan; the parks have not yet been built.
Samsung Electronics plans to begin construction of its second semiconductor fabrication plant in Taylor, Texas, in November 2026, moving ahead with its US foundry expansion. This is a plan; construction has not yet started. Its first facility in Taylor is preparing to begin operations by the end of the year. The source does not state the cause.
Samsung Electronics' semiconductor workforce in Austin, Texas, shrank 32% in 2025, while local operating expenditures plunged nearly 75%. In contrast, activity increased at its nearby Taylor foundry, which is preparing to begin operations by the end of 2026 and gradually ramp up 2nm chip production. The start of Taylor operations and the 2nm ramp-up remain planned and have not yet occurred.
Summary: TSMC CEO C.C. Wei confirmed on Thursday, October 15, 2026 that the company is considering expanding its American production capacity beyond Arizona, with Texas as one option; teams have been sent to Texas for evaluation, and TSMC has discussed with a customer attempting to build a fab called Terafab (Elon Musk). If TSMC joins the project, it would insist on operating the fab. Discussions are ongoing and no agreement has been reached yet.
At its 3Q26 earnings call, TSMC CEO C.C. Wei said US customer demand and government support are prompting the company to explore expansion beyond Arizona. Teams have been sent to assess Texas, but whether to build a fab there remains to be seen. The event is at the planning/assessment stage and no decision to build a fab has been made.
fab capacityTSMCTrendForce Official (Market Data)Capacity Change