Skip to navigationSkip to main contentSkip to right columnADVERTISEMENTJohn PotterSun, June 7, 2026 at 10:01 PM GMT+2 6 min readBenzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below.Elon Musk's proposed TeraFab chip manufacturing facility in Texas, intended to support AI infrastructure expansion, is already drawing attention from chip-equipment supplier ASML (NASDAQ:ASML), according to Reuters.ASML CEO Christophe Fouquet warned that Musk's semiconductor ambitions tied to Tesla Inc.(NASDAQ:TSLA), xAI and SpaceX could further strain an already tight global chip industry. "Demand on AI is coming so strongly that we will be in a supply-limited market for quite a while," Fouquet told Reuters on the sidelines of a May 19 tech event in Antwerp, Belgium.ASML expects the global semiconductor market could eventually reach $1.5 trillion by 2030 as AI-related demand accelerates, he said.Don't Miss:Some of the world's most valuable private companies—including SpaceX and other late-stage tech giants—are now accessible through diversified private-market funds inside this mainstream investing appIf there was a new fund backed by Jeff Bezos offering a 7-9% target yield with monthly dividends would you invest in it?Musk's TeraFab Could Pressure Global Chip CapacityFouquet said he has spoken directly with Musk about the proposed TeraFab initiative, which is intended to support semiconductor production tied to AI and autonomous systems. "He’s very serious about all those projects," Fouquet told Reuters, referring to Musk's semiconductor and satellite ambitions.A Texas public hearing notice tied to a property tax abatement request described the proposed TeraFab project as a "multi-phase, next-generation, vertically integrated semiconductor manufacturing and advanced computing fabrication facility" with an estimated initial investment of $55 billion and a potential total of up to $119 billion.Major chipmakers, including Nvidia Corp. (NASDAQ:NVDA), Taiwan Semiconductor Manufacturing Co. (NYSE:TSM), Samsung Electronics, SK Hynix, Micron Technology Inc. (NASDAQ:MU) and Intel Corp. (NASDAQ:INTC), all rely on