The move comes as Elon Musk’s companies look to secure chip capacity for AI, robotics and space-based data centers.

August 7, 2026

SpaceX and Tesla are set to begin construction of Terafab, a massive semiconductor manufacturing complex in Texas, with an initial investment of $16.8 billion.

The site, which Musk claimed will be “the largest and most valuable building on Earth” in a post on X, will be built in Grimes County, Texas, outside Houston.

In a post on its website, SpaceX said more than 100 million square feet of manufacturing space is planned, making it one of the largest chip manufacturing projects ever proposed.