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Elon Musk, CEO of Tesla and SpaceX, says: "The Terafab is bringing cutting-edge manufacturing to America, creating thousands of high-paying jobs in the Lone Star State, and enabling us to produce AI chips at scale for use on Earth and in space."
The Terafab factory, a joint chip-building venture for Musk's companies Tesla and SpaceX, will cover an area equivalent to more than 1,700 American football fields in Grimes County, if completed.
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Planned for Grimes County, about 70 miles northwest of Houston, the colossal Terafab semiconductor facility is expected to span more than 100 million square feet and produce advanced chips for SpaceX and Tesla.
The Tesla and SpaceX billionaire plans to build a massive semiconductor facility known as Terafab in Grimes County, roughly 70 miles northwest of Houston. The 100-million-square-foot complex is expected to manufacture chips for Musk's self-driving vehicles and Optimus humanoid robots, while also incorporating natural gas-fired power plants and artificial intelligence facilities, according to a tax-abatement agreement with Grimes County.
Sawyer Merritt, a widely followed Tesla investor who often gets early access to Musk's companies, posted the update himself. He wrote that Terafab has "officially started construction," and described it as the most advanced chip fabrication plant and largest building in the world.
Tesla and SpaceX plan a $16.8-billion first phase for Terafab, a vast Texas complex designed to manufacture advanced AI chips under one roof.
The company is also building its own AI chip factory with EV maker Tesla (TSLA), known as Terafab, with the first phase expected to cost roughly $16.8 billion and eventually cover more than 100 million square feet.
On Thursday, August 6, SpaceX and Tesla formally confirmed that Terafab, the advanced semiconductor complex they are jointly developing, will be built in Grimes County, Texas, about an hour northwest of Houston.
Some testers used Grok 4.6 and Claude Opus 5 respectively to process three 3D scenes from Musk's TERAFAB large factory — the external environment at dusk, the clean room production workshop, and the central operation hall with walking workers.
Tesla and SpaceX Announce $16.8 Billion Terafab Chip Factory in Texas
Terafab is not a traditional factory. It is a vertically integrated semiconductor megafactory — designed to combine logic chip fabrication, memory production, advanced packaging, and testing under a single roof.
And increasingly, that investment extends well beyond compute. SpaceX and Tesla, for example, revealed an initial $16.8 billion investment in Terafab, a massive semiconductor and advanced-computing campus planned for Texas.
Elon Musk anunció la construcción de Terafab, una gigantesca planta de semiconductores en Texas valorada en USD 16.800 millones, diseñada para abastecer la creciente demanda de chips de Tesla, SpaceX y xAI.
Public Terafab material confirms plans involving lithography masks, logic, memory, packaging, and testing. It does not establish that a production-ready FEL will replace conventional EUV sources inside the facility.
The company's proposed US$16.8bn Terafab semiconductor complex in Texas is planned to span 100 million sq ft and support more than 1TW of computing power.
SpaceX and Tesla have commenced construction on Terafab, a massive semiconductor manufacturing facility in Grimes County, Texas. Backed by an initial joint investment of £13.1bn ($16.8bn), the site aims to bridge the growing gap between current ...
SpaceX and Tesla are building a 100 million square foot facility they will call TeraFab- northwest of Houston in Grimes County. That’s 5 times larger than the current largest building in China.
Goldberg said SpaceX’s relationship with Nvidia goes beyond chip purchases. Nvidia-powered AI systems could support SpaceX’s ground facilities, Starmind satellites, and expanding computing network. Goldberg sees TeraFab and Nvidia’s $500 billion AI funding plan as potential signs of a deeper alliance between SpaceX and Nvidia.
Tesla's massive new semiconductor manufacturing plant, known as Terafab, is already under construction, according to new aerial footage shared online. Independent observer Joe Tegtmeyer shared drone footage of the site after receiving flight ...