Terafab

I think that, you know, regardless, we're having all of these data centers being scheduled in.

Also, it's interesting to note, Elon Musk, I mean, you can't talk about this without mentioning him, he's building the TerraFab.

And now this is related to data center, it's not a data center itself.

But he's basically invested, I think it's like $120 billion into this Terafab.

So all of that, he's like, you guys can't even output enough for what I need.

So he's like, you know, stuff it, I'll make it myself.

So now he's building this huge TerraFab, you know, largest building on earth basically it's going to be.

So that gives an idea of the amount of data and processing that's needed for these huge projects that's

Uh, Intel, though, is down 4%, and this shows that it's still brutally competitive out there as well.

NVIDIA, which did hit a new all-time high on Friday, didn't close at one, but hit one, is up around 0.5%, and the trigger is Elon Musk indicating that TSMC is in discussions about participating in the huge Terrafab semiconductor product, uh, and Intel had been expected to play a major role.

So that's the reason for the Intel move to the downside, uh, there as well.

Uh, another AI power winner, Vista, was up about 4 to 6% pre-market following reports the US government is preparing 4.2 billion loan to increase output at its free nuclear plant.

[upbeat music] I'm Charles Payne, and this is the Fox Business Report.

Intel shares are down more than three and a half percent today after Elon Musk signaled that Intel's rival, Taiwan Semiconductor, is looking at helping his chip manufacturing venture, Terrafab.

Intel is already involved in the project.

Investors were hoping Intel would have Terrafab all to itself, though Musk has explained TSMC could supplement rather than replace Intel's role in the semiconductor plant.

Luxury brands might not be seeing a recovery this year.

Analysts at UBS say the war in Iran and other factors are delaying the recovery.

Now, his companies, he announced that a wave of megaprojects have taken place here in 2026, and he's chasing the states that give him the biggest tax breaks worldwide.

Who would have thought a trillionaire is doing that, right? So we got SpaceX and Tesla's $16.8 billion Terafab chip campus taking place in Grimes County, Texas, one of the largest chip factories in the world.

They've got the $100 billion SpaceX rocket refueling buildout taking place in Louisiana.

They've got Starbase expanding in Brownsville, Texas.

So there's a lot of reasons for these two companies to come together, much less the capital structure where Musk would finally get control of Tesla.

Yeah, and we see that already playing out, beginning to play out with Terafab.

John McNeill, great to have you on.

Appreciate it.

Mm.

So the supply chain becomes the major risks, so that's why we see today such initiatives as, uh, Elon Musk with his Terrafab project, uh, bringing web.

His main idea is to create, uh, one, uh, platform with recursive innovation cycle, and this recursive innovation cycle is a possible solution how we can define a new manufacturing paradigm for semiconductors, and most important, innovate extremely fast in, uh, short timeframes and creating new capabilities.

Because, uh, the current capacity, global capacity for semiconductor manufacture already overloaded by the AI chips, so the, uh, the, the new way, uh, or the old way, I would say, increasing capacity with the old way, with, uh, standard fabs, uh, looks like is not, uh, the best solution.