TSMC’s Capacity Sold Out by Musk’s $20B Terafab Plan, Nvidia Faces 2nm Bottleneck
Mizuho projects Elon Musk’s Terafab plan will require $20bn in capex for new equipment in 2026 and power up to one terawatt, highlighting TSMC’s fully booked capacity. Nvidia’s Feynman AI chip, slated for 2028, may be redesigned or delayed due to TSMC’s 2nm production bottleneck.
1. Musk’s Terafab Plan Pressures TSMC Capacity
Mizuho forecasts Elon Musk’s Terafab buildout to need $20bn of new equipment in 2026, power demands up to one terawatt, and roughly one billion Nvidia GPUs per year, yet TSMC’s fabrication lines have no spare capacity for additional orders.
2. Nvidia Feynman Platform Faces Redesign Risk
TSMC’s 2nm process is fully booked through 2028, forcing Nvidia to potentially redesign its Feynman AI chip platform, which could affect its performance targets, timelines and costs as TSMC ramps up pricing to manage demand.
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