The outlook for AI neocloud providers has sparked a clash: Tesla CEO Elon Musk warned that more than 200 such companies could face large-scale failures or consolidation, while Nvidia CEO Jensen Huang, speaking in an interview at the GTC Berlin conference, said demand for neocloud services has exceeded expectations and current funding shortages will eventually be resolved. The source does not state the cause of the potential failures.
On Oct. 30, Hanmi Semiconductor reported third-quarter revenue of 181 billion won and operating profit of 90.8 billion won, up 8.9% and 33.9% respectively from a year earlier; the operating margin reached 50.2%, up 9.4 percentage points from 40.8% a year earlier. The company said increased demand for equipment such as thermocompression (TC) bonders used in high-bandwidth memory (HBM) production supported earnings growth, attributing this to a high-value-added business structure centered on AI semiconductor packaging equipment. Sequentially, however, revenue and operating profit fell 27.9% and 30.3% respectively. Hanmi Semiconductor expects fourth-quarter results to improve from the third quarter because deliveries of some equipment originally scheduled for the third quarter were deferred to the fourth, and it expects to set new annual records for both revenue and operating profit for a third consecutive year, following 2024 and 2025. The company also cited a positive medium- to long-term outlook on continued capacity expansion by global semiconductor companies, having established its U.S. subsidiary Hanmi USA in California in October, and expects another record-high dividend this year after paying a 2025 year-end dividend of 800 won per share.
thermocompression (TC) bonders used in high-bandwidth memory (HBM) productionHanmi SemiconductorThe Elec
Elon Musk recently confirmed the possibility of a merger between SpaceX and Tesla; this remains a stated possibility, not an implemented transaction. The stated ambition is to redefine competition in the AI era beyond individual products and technological advantages toward integration across the entire industrial value chain, encompassing semiconductors, energy, computing, communications, and autonomous systems. The source does not state any conditions, timeline, or whether any formal process has been initiated.
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
Speaking at GTC Berlin, Nvidia CEO Jensen Huang, and speaking on SpaceX's third-quarter 2026 earnings call, Tesla CEO Elon Musk, reached a rare consensus on a pivotal topic: GPUs are no longer rapidly depreciating consumables; instead, their effective operational lifespans far exceed initial market expectations. The source does not state the cause, and no specific prices, quantities or timelines were given.
Tesla and Nvidia are reportedly investing a combined KRW3.7 trillion (US$2.8 billion) to help Samsung Electro-Mechanics expand Ajinomoto Build-up Film (ABF) substrate production facilities in South Korea. The move reflects growing efforts by global technology companies to secure stable supplies of high-performance semiconductor substrates for AI applications.
South Korean chipmaker LX Semicon has announced the sale of its silicon carbide (SiC)-related patents, marking its formal exit from the SiC market. According to disclosed information, the company is selling a portfolio of more than 60 patents covering SiC power semiconductor devices and epitaxial wafers, with an expected sale price of less than KRW 1 billion; the patents cover SiC MOSFET technologies (including planar and trench-gate structures, termination and gate-pad designs) as well as epitaxial wafer technologies, span South Korea, the United States, China's mainland, Europe, Japan, and Taiwan, and some remain valid until 2045. The patents are being sold to a South Korean power semiconductor company, although specific transaction details have not been disclosed. As to causes: industry observers point to stagnant electric vehicle demand, which has slowed growth in the SiC market and dampened near-term return expectations; since Lee Yoon-tae took over as CEO in late 2023, the company has shifted focus to core businesses and streamlined operations through asset disposals, having already downsized its SiC R&D team in 2024; financial pressure added urgency, as annual revenue declined for three consecutive years, falling from KRW 2.1193 trillion in 2022 to KRW 1.6391 trillion in 2025, and in the first half of 2026 revenue dropped 7.6% year on year while operating profit plunged 39%, with display driver ICs (DDIs) still accounting for more than 86% of total revenue. The sale marks the final step of LX Semicon's retreat from SiC, following its earlier liquidation of its power device joint venture with Japan's Sanken Electric.
SiC power semiconductor devicesSiC epitaxial wafersSiC MOSFETLX SemiconTrendForce
Elon Musk states that building human-like robot hands is "shockingly difficult." Tesla, 1X, and Boston Dynamics are pursuing different paths, including 22 degrees of freedom for near-human dexterity, low-gear tendon drives for the home, or four fingers built for mass production, within a US$6 billion market.
human-like robot handsdexterous handsTesla, 1X and 3 totalTrendForce Official (Market Data)
According to a report reposted by TrendForce, Tesla is reportedly putting KRW 1.1 trillion on the table to lock in Samsung Electro-Mechanics' FC-BGA substrate supply through 2033; NVIDIA is also said to be grabbing capacity. The item is a reposted report with 'reportedly'/'is said to be' wording, and whether the deal is actually implemented is unconfirmed. The source does not state the cause.
FC-BGA substrate (AI chip substrate)Tesla, Samsung Electro-Mechanics and 3 totalTrendForce Official (Market Data)Partnership/M&A
Tesla and SpaceX are reportedly negotiating with about 10 South Korean semiconductor materials, components, and equipment suppliers as Elon Musk moves ahead with Terafab. The discussions cover process materials, piping and valves, wastewater recycling equipment, and semiconductor testing components, raising questions about whether Taiwan's semiconductor supply chain will benefit from the massive expansion. The source does not state the cause.
Tesla has moved into early production of its Optimus humanoid robot. According to the analysis, this has exposed an unusual challenge in scaling embodied artificial intelligence (AI): the company may need to manufacture thousands of robots before it can generate enough training experience to make them commercially useful. The article is analytical background reporting; no specific production figures or timelines are given.
Elon Musk's Terafab semiconductor production initiative is expanding its supplier outreach in South Korea, with Tesla and SpaceX approaching materials, components, and equipment suppliers across nearly every segment of the planned supply chain, from basic piping components and process materials to testing components. The source describes this as a planned supply chain, and the outreach targets a production initiative still in the planning stage; the source does not state the cause.
According to Maeil Business Newspaper, citing industry sources, Samsung Electro-Mechanics is reportedly set to receive a combined KRW 3.7 trillion in investment from Tesla and NVIDIA to expand advanced chip substrate production; the investment is a reported commitment. The company has signed a long-term flip-chip ball grid array (FC-BGA) substrate supply agreement with Tesla and is expanding dedicated production lines at its Sejong facility. The substrates are expected to be used in AI chips for Tesla's autonomous electric vehicles and Optimus humanoid robots under a five-year agreement running from 2029 through 2033. Tesla will contribute approximately KRW 1.1 trillion toward the expansion in exchange for guaranteed substrate supplies; the funding forms part of Samsung Electro-Mechanics' KRW 4.27 trillion Sejong investment plan disclosed in September. Construction of the new FC-BGA substrate production facilities at the Sejong plant is expected to be completed by the end of 2027, with equipment installation and trial operations scheduled for the first half of 2028, mass production in the second half, and deliveries to Tesla expected to begin in 2029. According to TechNews, NVIDIA is also expanding global substrate capacity through supplier partnerships and aims to increase its total IC substrate capacity to 2.5 times its current level over the next three years: in Japan, NVIDIA has committed billions of dollars in capacity reservation prepayments to Ibiden, whose Ono plant aims to triple production capacity, with additional output expected to begin ramping in the first quarter of 2028; in South Korea, Samsung Electro-Mechanics is expanding its Sejong and Busan facilities, with NVIDIA expected to account for a significant share of its annual package substrate capacity by 2028 — while NVIDIA did not disclose an investment amount, Maeil Business Newspaper reports the commitment is believed to be worth approximately KRW 2.6 trillion; NVIDIA is also supporting Taiwan's Unimicron in expanding its KF substrate capacity through a capacity reservation agreement, with additional output expected from the second quarter of 2027 and full capacity targeted by mid-2028. Separately, Samsung Electro-Mechanics disclosed a KRW 360.5 billion contract on October 19 to supply memory semiconductor package substrates to an undisclosed global customer throughout 2027, with the customer not identified citing business confidentiality, according to Chosun Biz. The broader expansion comes as high-end FC-BGA production remains concentrated among a handful of suppliers, including Samsung Electro-Mechanics, Japan's Ibiden, and Taiwan's Unimicron; industry estimates cited by Maeil Business Newspaper put Ibiden's market share at more than 70%, with Samsung Electro-Mechanics working to narrow the gap.
FC-BGA substratememory semiconductor package substrateKF substrateSamsung Electro-Mechanics, Tesla and 5 totalTrendForceCapacity Change
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
Merger talks between Tesla and SpaceX remain ongoing: Elon Musk said he is "tap dancing through a minefield" on a SpaceX–Tesla deal. The special committees of independent directors have not agreed on terms, there is "no guarantee," and Tesla would need "a 50% vote of all shares" for the deal. The merger remains at the talks/planned stage — no terms agreed and no completed transaction.
Tesla, SpaceXTrendForce Official (Market Data)Partnership/M&A
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 information gathered by THE ELEC on Oct. 20, Elon Musk's Tesla and SpaceX are holding talks with South Korean semiconductor materials, components and equipment suppliers to secure a supply chain for their Terafab chip manufacturing project. Several companies have already signed NDAs and advanced to discussions over specific products. On the morning of Oct. 13, the opening day of SEMICON West 2026 (held in San Francisco from Oct. 13 to 15), Terafab representatives visited booths operated by about 10 Korean companies, including ENF Technology, Dongjin Semichem, Asflow, BMT, GnG Intech, Unisem, MiCo and Hanmi Semiconductor; talks with many of these companies had already been underway for several months. ENF Technology, Asflow and GnG Intech made their first contacts during the event; BMT is in talks over valves and fluid-handling components; KoMiCo signed a three-party NDA with Tesla and SpaceX about a month ago to discuss cleaning services for an R&D pilot line in Texas; Unisem has signed an NDA to discuss environmental equipment including scrubbers; Dongjin Semichem has been in talks with Tesla for two to three months centered on its thinner production plant in Texas, with materials including phosphoric acid also under discussion; Hanmi Semiconductor is discussing the supply of thermocompression (TC) bonders; HPSP has agreed to supply one high-pressure hydrogen annealing (HPA) system for Terafab's R&D line; and ISC has advanced to exchanging samples and R&D design information. Overseas, Fujifilm holds regular meetings with Terafab's procurement team on potential supplies of CMP slurries, photoresists, etchants and cleaning chemicals, and Lam Research and Applied Materials are understood to have established dedicated Terafab teams. Tesla and SpaceX do not do business with Chinese suppliers, and industry officials said the companies are seeking prices even lower than those offered by Chinese suppliers, making Korea a good option. Terafab was jointly announced by Tesla, SpaceX and xAI in March, targeting a fab capable of processing 1 million wafers a month within 10 years, with an estimated initial investment of $16.8 billion and more than 3,000 jobs expected; SpaceX signed a tax abatement agreement with Texas earlier this month and began construction, and industry observers expect the initial 100,000-wafers-per-month facility to be completed before 2030. Most of these supply arrangements remain in the discussion stage and are not yet confirmed as final supply agreements.
semiconductor materialspiping componentsvalvesTesla, SpaceX and 16 totalThe ElecPartnership/M&A
According to the source, Samsung Electronics is expected to enter 2027 with approximately 80% of its planned memory production secured under long-term contracts, reinforcing its pricing position; this is an expectation, not an achieved result. Meanwhile, China's ChangXin Memory Technologies (CXMT) is expanding capacity and attracting attention from US tech companies seeking alternative DRAM suppliers. The source headline also references Samsung's HBM4 supply lock-in and that Apple and Tesla seek DRAM alternatives. The source does not state the cause.
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