- SpaceX and Tesla are investing USD 16.8 billion to build Terafab, an advanced AI semiconductor complex in Texas aimed at narrowing a growing gap in global chip supply, according to official statements.
- The first phase of the project will be developed in Grimes County, Texas, and is expected to create at least 3,000 high-paying jobs for engineers, technicians and plant operators.
- The facility will span 100 million square feet and will make, package and test advanced logic and memory chips under one roof.
- The chips are meant to power Tesla's Optimus humanoid robots and Cybercabs, as well as high-performance processors for SpaceX's planned orbital data centres.
- Texas Governor Greg Abbott announced a USD 30 million Texas Enterprise Fund performance grant, stating that the facility will "accelerate chip production in Texas at an unprecedented scale and expand economic opportunity across the region."
SpaceX and Tesla are investing USD 16.8 billion to establish Terafab, a state-of-the-art AI semiconductor complex in Texas, aimed at addressing the global chip supply crisis. The facility, spanning 100 million square feet, will create at least 3,000 high-paying jobs in Grimes County.123
The project is designed to support chip production for Elon Musk's ventures, including Tesla and SpaceX. The first phase will focus on manufacturing, packaging, and testing advanced logic and memory chips under one roof. Musk stated, "The Terafab is bringing cutting-edge manufacturing to America, creating thousands of high-paying jobs in the Lone Star State, and enabling us to produce AI chips at scale for use on Earth and in space."
The mega facility is expected to meet a projected need for over one terawatt of computing power across Musk's businesses. This investment comes as Musk intensifies the integration of artificial intelligence across his companies, following SpaceX's acquisition of AI startup xAI earlier this year. Texas Governor Greg Abbott welcomed the initiative, announcing a USD 30 million Texas Enterprise Fund performance grant, emphasizing that the facility will "accelerate chip production in Texas at an unprecedented scale and expand economic opportunity across the region."5
“The first phase in Grimes County will produce chips for Tesla's Optimus robots and Cybercabs, as well as processors for SpaceX's orbital data centers. Texas Governor Greg Abbott has pledged a $30 million Texas Enterprise Fund grant, calling the project a boost to regional economic opportunity.”
