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Ask HN: Terafab – Smart move or insane financial risk?

3 points

by imheretolearn

14 hours ago

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SpaceX has submitted plans to build Terafab.

https://www.reuters.com/business/spacex-plans-55-billion-chip-plant-texas-2026-05-06

It is smart strategically and financially risky - very on-brand for Musk. Given how hard it is to build, let alone scale a fab without considering existing competition(TSMC) which is light years ahead I’m curious to know what HN thinks of this move?

SpaceX is already targeting a trillion dollar IPO and as an investor if you believe in this long term vision a trillion dollars might not seem too unreasonable.

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vegaxarchitect

5 hours ago

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I think they are the same thing usually but only when it's viewed in hindsight. By nature highly lucrative moves have to involve either information asymmetry or large absorption of volatility (risk). In this case it's both, but seems like he's projecting into the future at all times.