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SpaceX "Terafab" Could Drive $135B in Chip Equipment Spending

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UBS analysts estimate SpaceX's internal chip fabrication ambitions — sometimes dubbed "Terafab" — could generate roughly $135 billion in wafer fabrication equipment purchases over the next five years. SpaceX has also been added to the Nasdaq 100 index, a milestone that typically forces passive index funds to buy the stock. Despite the index inclusion, SpaceX shares fell sharply on Tuesday, a divergence that suggests the market may be skeptical of near-term execution or simply rotating profits.

Why it matters

If the $135 billion spending estimate is even partially correct, it would be one of the largest single-company boosts to semiconductor equipment demand in history — directly benefiting suppliers like ASML, Lam Research, and Applied Materials. The Nasdaq 100 inclusion adds a passive-buying tailwind to SpaceX's stock, but the day-one price drop is a yellow flag worth watching. Chip equipment names are the cleaner, more actionable play here since SpaceX itself is not publicly traded in the traditional sense.

Watch next

Next quarterly earnings for AMAT, LRCX, and ASML — all expected within the next 1-2 months. Any official SpaceX capital expenditure announcements or Terafab facility groundbreaking news.

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