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HomeReal EstateIndustrial & LandSpaceX and Tesla plan $16.8B first phase for Terafab c…

SpaceX and Tesla plan $16.8B first phase for Terafab chip factory in Texas

The Terafab project, planned for Grimes County and expected to hire at least 3,000 people, is described as spanning more than 100 million square feet and covering chip manufacturing, packaging, and testing in one site.

SpaceX and Tesla said they will invest $16.8 billion in the initial construction phase of Terafab, a large semiconductor factory planned for more than 100 million square feet in Grimes County, Texas, according to a Bisnow report.

The companies said the facility is expected to employ at least 3,000 people, with many hires targeted locally from the area south of Houston, and they released new visuals showing what the manufacturing project will look like.

Bisnow also reports that SpaceX and Tesla previously disclosed that the total investment could reach up to $119 billion if additional phases are added, and that Terafab is intended to support the advanced chips needed for AI products and robotaxis.

The announcement says Terafab will bring manufacturing, packaging, and testing for logic and memory devices under one roof to speed production, and it cited demand expectations for the companies0ombined chips to surpass 1 terawatt of compute.

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