You’ll find Musk in the middle of it all this week at ASML’s virtual tech confab. It’s a way for the chipmaker to show how it’s up for the challenge of building out capacity in the age of AI. They are zeroing in on the Terafab project, something ASML has put down as a ‘serious endeavor’ and one they’d be open to some kind of partnership on.
It’s an employees-only affair, but the fact that he’s the keynote says enough. ASML has been in talks with Musk and won’t mince words about being on board as a vendor while his venture puts together a very ambitious plan for chip production.
Why ASML is giving Musk the mic
If you want to talk about the AI supply chain, you have to go through ASML. They’re the ones making the top-tier lithography gear for the world’s best semiconductors, and their client list includes the likes of TSMC and Samsung.
With all the money being put into AI, ASML is now Europe’s priciest stock. Having Musk in to give the staff a heads-up is a nod to the part the company plays in making new capacity a reality, and in how Terafab might fit into the global picture.
They’ve called Terafab what it is: a ‘serious endeavor’. And with Musk and his people making inroads into the semiconductor world, ASML is of the mind that there will be some good collaboration to be had.
Inside Musk’s Terafab play
This is a joint SpaceX-Tesla effort to make the kind of chips you need for AI, robotics and space. They put it on the table in March and have since put forward a plan for a U.S. plant with a price tag of $55 billion or more.
Musk is after a terawatt of computing a year from it, which is what he figures his companies will be running on. We’re talking 2 nanometer chips, so you can put it in the most advanced category of process tech available today.
Per ASML, he’s going to be on stage to put his ideas on the table when it comes to AI, space and the rest. It’s a natural fit with what the venture is about and with ASML’s own plans for its equipment.
Here is how ASML sees it:
– Terafab is a serious proposition.
– We’ve had some high-level talks with Musk.
– There will be a lot of partners involved.
– We are in it as both a vendor and a collaborator.
– He’ll be telling our people where he’s headed.
Challenge to incumbent chip makers
Musk doesn’t hide his hand: he wants to put up with TSMC and others on a scale the industry isn’t used to. In his view, the current setup is too sluggish to keep up with what AI and robotics are going to demand.
That makes for an interesting situation for ASML. You have them supplying the old guard and now putting out word that they could work with a new player who wants to grow fast. But at the end of the day, any move to make more of these chips has to be done with ASML’s tools.
What the closed-door talk signifies
The conference is a private, online thing for the ASML team. They’ve already put on record that they’ve been in conversation with Musk about Terafab and that their top brass has been in touch with him.
There’s nothing for the public to see, but you don’t have to read between the lines. ASML is staying on top of a customer with some lofty goals and, in the process, making sure everyone knows it has the upper hand in the coming wave of AI hardware.
