Tesla and SpaceX have announced plans to build Terafab, a large-scale semiconductor facility in Grimes County, Texas, with an initial investment of $16.8 billion. The project is designed to expand advanced chip production for future computing needs.
According to the companies, the site will cover more than 100 million square feet and is expected to become one of the most ambitious manufacturing complexes ever developed. The facility is planned to combine chip manufacturing, packaging, and testing in a single location, aiming to speed up innovation cycles.
SpaceX says the factory will support advanced logic and memory chips built for edge computing and inference, including hardware tied to Tesla's Optimus robots and Cybercabs, as well as systems intended for SpaceX's space-based data infrastructure. The company also said the project will create at least 3,000 jobs across Grimes and nearby Brazos County.
SpaceX noted that the facility will use water from the Gibbons Creek Reservoir rather than local groundwater. The announcement follows growing attention around the project's scale, regional impact, and long-term role in strengthening domestic chip capacity.
If delivered as planned, Terafab could become a major milestone in the evolution of high-performance computing and next-generation industrial manufacturing.
