SpaceX and Tesla unveil Terafab chip complex in Texas: $16.8B investment, over 100M sq ft

Published Aug 7, 11:00 AM UTC

SpaceX and Tesla have formally unveiled plans for the initial phase of their massive Terafab semiconductor manufacturing complex in Grimes County, Texas. The first stage, expected to use Intel's 14A process technology, requires a $16.8 billion investment. The completed campus is planned to encompass over 100 million square feet of manufacturing space, making it far larger than any existing semiconductor facility, including Samsung's Pyeongtaek campus. The vertically integrated facility will produce AI inference processors for Tesla's Optimus robots and Cybercab vehicles, as well as high-power processors for SpaceX's space-based data centers. The project aims to meet the companies' combined demand for compute power, projected to exceed 1 terawatt per year. The facility will employ at least 3,000 people, with 60-80% hired locally, and will use water from Gibbons Creek Reservoir with on-site treatment and recycling.