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[TECHNOLOGY] · United States · 56 sources

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SpaceX and Tesla announce Terafab AI chip complex in Texas

SpaceX and Tesla have announced the development of Terafab, a massive semiconductor manufacturing complex to be located in Grimes County, Texas. The project aims to create a vertically integrated ecosystem encompassing logic chip production, memory, advanced packaging, and testing to meet the rising demand for AI compute power.

The first phase of the project involves an initial investment of $16.8 billion and is expected to cover over 100 million square feet. This phase is projected to create at least 3,000 jobs. Elon Musk has described the completed facility as "the largest and most valuable building on Earth by far." Long-term plans suggest total investments across all phases could reach up to $119 billion.

The facility is designed to support over one terawatt of computing demand, producing specialized chips for Tesla’s Optimus humanoid robots, Cybercabs, and SpaceX’s planned orbital data centers. Intel has also joined the project as a design and packaging partner.

To ensure stable energy for the high-demand facility, SpaceX plans to utilize natural gas power plants and battery storage systems. The project is supported by the state of Texas, which is providing a $30 million grant through the Texas Enterprise Fund.

Entities

Cyberspace Administration of China · Elon Musk · Greg Abbott · Grimes County · Grimes County, Texas · Intel · Ministry of Industry and Information Technology (MIIT) · SpaceX · Terafab · Tesla · Yushu Technology Co. · civil explosives industry

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