The semiconductor industry once again paints a very clear picture of the new tech geopolitics: it’s no longer just about manufacturing more chips but about controlling the entire supply chain. SpaceX plans to build a large dedicated facility in Texas to power Elon Musk’s projects, Apple is exploring alternatives to TSMC in the U.S. and Malaysia is aiming to move up the value chain in integrated circuit design while an anti-corruption investigation surrounds its deal with Arm.
These are three different stories, but they point in the same direction. Chips have become strategic infrastructure. They power autonomous vehicles, satellites, AI data centers, robots, mobile devices, defense systems, energy, and digital services. Over-reliance on a single supplier, an island, or one technology leaves you exposed.
For years, many tech companies managed a highly efficient global supply chain: design in one country, manufacturing in another, packaging in Asia, final assembly elsewhere, and global sales. However, AI, US-China tensions, and the concentration of advanced production in Taiwan have shifted the calculus. Today, the priority is no longer just cost but access, control, resilience, and agility.
SpaceX wants its own mega-chip factory in Texas
The most striking news comes from Texas. SpaceX announced plans for Terafab, a semiconductor and advanced computing manufacturing facility in Grimes County, about 70 miles northwest of Houston. The initial investment is projected at $55 billion, potentially reaching $119 billion if all phases are completed.
Linked also to Tesla, the project aims to produce chips for various Musk-related ventures: autonomous driving systems, SpaceX’s satellite constellation, humanoid robots, AI data centers, and future space computing infrastructure. According to available information, Terafab would use Intel’s 14A process technology, making Intel a key piece in this highly ambitious industrial bet.
This move also has financial implications. SpaceX indicated in its IPO documentation that access to AI chips is a significant risk for its plans. The company does not have long-term contracts with many chip suppliers, and its hardware needs surpass what the market can easily supply. Hence, the logic of building its own capacity, despite the enormous technical, energy, and economic challenges.
Grimes County has already approved tax incentives and designated an reinvestment zone linked to the project, though local opposition exists. Some residents have expressed concerns over environmental impact, water and energy pressures, and the potential change this large facility could bring to a rural area. The promise of jobs and investment coexists with a tough question: To what extent should regions grant tax advantages to giant tech projects that also demand public resources and infrastructure?
Terafab is not just another factory. If it moves forward, it signals that some major tech firms no longer want to just buy chips on the open market. They want secure access, design capabilities, and, if possible, in-house production within a more controlled chain. Vertical integration is back in fashion—not from industrial nostalgia but because AI has made chips a scarce resource.
Apple looks to Intel and Samsung to reduce TSMC risk
Apple is also making moves, albeit more cautiously. The company has had preliminary talks with Intel and Samsung Electronics to explore manufacturing some of its main processors in the U.S. There are no orders, finalized agreements, or public commitments yet, but simply opening that door is significant.
Dependence on TSMC has been one of Apple’s greatest strengths over the past decade. Its A-series and M-series chips have benefited from Taiwan’s advanced manufacturing capacity, offering a performance, efficiency, and scale combination that’s hard to match. But this dependence also presents risks. Taiwan is the global center for advanced manufacturing, and any geopolitical tensions, natural disasters, or capacity restrictions could impact the entire supply chain.
Samsung is developing an advanced plant in Taylor, Texas, and Apple reportedly visited those facilities under construction. Intel, for its part, is trying to revive its foundry business, with processes like 18A-P being potential alternatives for U.S. manufacturing. Still, Apple won’t switch partners solely for political reasons. It needs performance, yield, stability, cost, and scale—areas where TSMC currently leads.
There’s also a strategic signaling aspect. Apple might be exploring real options but also sending a message to TSMC: exclusivity shouldn’t be assumed. With NVIDIA gaining importance as a key TSMC customer, Apple needs to safeguard its access to advanced capacity. Having alternatives, even partial or future ones, strengthens its position.
A 20% shift of certain wafers to Intel or Samsung could have major industrial and financial impacts. For Intel Foundry, landing a significant order from Apple would be a huge validation. For Samsung, it would mean regaining ground with a major iPhone chip fabricator. For Apple, it’s an insurance policy, provided the technology meets expectations.
Malaysia aims to advance in design, but its deal with Arm under investigation
The third story comes from Southeast Asia. Malaysia’s Anti-Corruption Commission has identified two individuals to consider criminal proceedings related to a 1.1 billion ringgit deal with Arm Holdings. The final decision rests with prosecutors, who will review evidence and testimonies before deciding whether to press charges.
This case is sensitive because it affects one of Malaysia’s key ambitions to climb the semiconductor value chain. The deal with Arm was intended to give access to circuit design licenses and related technology, aiming to boost local capabilities in a higher-value phase beyond assembly and testing—areas where Malaysia already has a strong position.
During SEMICON Southeast Asia 2026, Investment, Trade, and Industry Minister Johari Abdul Ghani explained that the country had received 25 basic and 7 advanced IC design licenses from Arm. According to reports, five basic and three advanced licenses have reportedly been granted to local companies.
The strategic direction makes sense. Malaysia wants to move beyond being a manufacturing and backend hub to become more active in design, advanced packaging, and innovation. However, such an industrial policy requires strong governance. Family doubts about the process, costs, or resource allocation could undermine the credibility of the plan.
The Southeast Asian region is gaining attention amid supply chain reorganization. Global firms seek to diversify away from China, strengthen regional capacities, and get closer to ecosystems with talented labor, competitive costs, and stability. Malaysia has a real opportunity but must turn technological deals into actual capabilities and avoid political suspicions undermining the industrial goal.
The common thread in these three stories is clear. SpaceX aims to manufacture to avoid dependency. Apple seeks alternatives to spread risk. Malaysia tries to advance in design to avoid remaining at lower-value stages. The chip industry is entering a phase where global efficiency is no longer enough. Now, technological sovereignty, access to capital, energy capacity, intellectual property, and institutional trust matter most.
Frequently Asked Questions
What is Terafab, SpaceX’s project in Texas?
Terafab is a proposed manufacturing facility by SpaceX in Grimes County, Texas, for semiconductors and advanced computing infrastructure. The initial planned investment is $55 billion, potentially reaching $119 billion in later phases.
Why is Apple talking to Intel and Samsung if it already works with TSMC?
Apple aims to reduce risks associated with reliance on TSMC and explore U.S. manufacturing options. These discussions are preliminary, with no orders or contracts yet.
What role could Intel play in this new landscape?
Intel is trying to enhance its third-party manufacturing business. Successfully attracting clients like Apple or participating in projects like Terafab would be a major validation for its foundry strategy.
What is Malaysia investigating regarding its deal with Arm?
The Malaysian Anti-Corruption Commission is examining the 1.1 billion ringgit agreement with Arm Holdings, related to licensing of chip design technology. Two individuals have been recommended for potential prosecution, but the final decision rests with prosecutors.