SpaceX and Tesla will invest $16.8bn to build Terafab, a 100-million-square-foot AI chip fab in Texas, to feed more than 1TW of compute demand.

Facility will employ 3,000 people from neighboring counties

TeraFab plans a $55B semiconductor fab in Grimes County, Texas, serving Tesla, SpaceX, Intel, and xAI with one terawatt of annual processing