Tesla, SpaceX Set $16.8 Billion Texas AI Chip Megafactory Plan
Tesla and SpaceX have selected Grimes County, Texas, for Terafab, a planned semiconductor complex with more than $16.8 billion committed to its first phase. The project would place chip fabrication, memory production, packaging, and testing on one campus. This report examines its scale, intended uses, public support, and unresolved execution questions. Key Takeaways Terafab’s first phase carries a capital commitment of more than $16.8 billion. The planned campus could cover 100 million square feet and create 3,000 jobs. The facility is intended to produce AI chips for Tesla vehicles, robots, and SpaceX computing systems. Texas approved a $30 million performance-based grant.
