Elon Musk’s two flagship companies are building a semiconductor factory so large it makes every other building on Earth look like a studio apartment.
SpaceX and Tesla announced plans for a joint chip manufacturing facility in Grimes County, Texas, spanning over 100 million square feet. The project, dubbed Terafab, carries an initial price tag of $16.8 billion, with a potential full buildout cost ballooning to $119 billion.
A factory that redefines scale
The plant will focus on producing AI-optimized logic and memory chips designed for Tesla’s autonomous vehicle ambitions, its Optimus humanoid robots, Cybercab robotaxis, and SpaceX’s space-centric data operations.
The production target is approximately 1 terawatt of compute capacity annually.
