@space.x.company42: Elon Musk’s SpaceX and Tesla are moving forward with Terafab, a huge chip-making complex planned in Grimes County, Texas, near College Station. The first phase is expected to cost more than $16.8 billion. If later phases are built, the total investment could be much larger. Terafab is planned to cover more than 100 million square feet. At that size, it could become the world’s largest building by floor area and one of the largest chip factories ever planned. The facility is designed to produce advanced chips, memory, and chip packaging and testing all in one location. The chips would be used for Tesla’s Optimus humanoid robots, Cybercabs and other AI systems, as well as SpaceX’s planned space-based AI computing infrastructure. Intel has joined the project and is expected to provide expertise in chip design, manufacturing and advanced packaging. Tesla has also said Terafab could use Intel’s next-generation 14A chipmaking process. Musk and SpaceX have a long-term goal of producing enough chips each year to support more than 1 terawatt of computing capacity. This refers to the computing power of the chips, not the factory’s electricity use. The project is expected to create at least 3,000 jobs. Texas has also extended a $30 million grant to SpaceX, while the project qualifies for the state’s JETI incentive program. Terafab is planned near Gibbons Creek Reservoir, with the companies saying they intend to use reservoir water for industrial operations instead of relying on local groundwater. The project is still under development and is not yet producing chips. A smaller research facility at Tesla’s Giga Texas site is being developed as a step toward the larger Terafab project. Sources: Reuters, SpaceX, Tesla and the State of Texas.

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Monday 24 August 2026 16:43:53 GMT