Key facts
- Tesla and SpaceX are jointly investing $16.8 billion in a new 'Terafab' chip factory in Grimes County, Texas.
- The facility is planned to span over 100 million square feet and produce advanced semiconductors.
- Chips manufactured will support AI, autonomous vehicles, and SpaceX's space-based data centers.
- Intel is a confirmed contributor to the Terafab project.
- Tesla is also planning a separate $10.1 billion solar factory near Houston, Texas.
Tesla and SpaceX are jointly investing $16.8 billion in a new advanced semiconductor factory, dubbed 'Terafab,' in Grimes County, Texas. Elon Musk, CEO of both companies, stated the facility will be the largest and most valuable building on Earth, with over 100 million square feet of planned manufacturing space. The factory aims to produce chips optimized for edge computing and inference, crucial for Tesla's AI and robotics ventures, as well as high-power chips for operating SpaceX's space-based data centers. Intel has confirmed its contribution to the project, though specific details were not disclosed. SpaceX indicated potential future investments of up to $119 billion for the multi-phase construction plan. The announcement followed a county meeting where residents expressed concerns about tax breaks awarded to the project and a perceived lack of transparency. Separately, Tesla is also planning a $10.1 billion solar factory near Houston, which is expected to create 9,700 jobs and achieve 100GW capacity by 2028.