Musk pours billions to build the world’s top chip factory—Terafab lands in Texas
On August 6 local time, SpaceX and Tesla, both under Musk’s umbrella, jointly announced that Terafab, a super chip manufacturing hub, will be established in Grimes County, Texas, USA. The first phase will involve an investment of $16.8 billion.
The factory is positioned as the largest integrated wafer facility worldwide. It will combine the full chip value chain—chip design, manufacturing, packaging, and testing. The core goal is to achieve self-sufficiency in chips and break away from reliance on third-party chip suppliers. The official has not yet disclosed the production capacity for Phase 1. In the long term, the plan is to produce 1 terawatt of computing power per year (1 terawatt = 1,000 gigawatts). The chips produced will be supplied to Tesla’s autonomous driving, the Optimus humanoid robot, and SpaceX’s space data centers.
On a social media platform, Musk said directly that Terafab would be the top single building worldwide in both scale and value. The project will be built in multiple phases. Once fully completed, the total investment could reach as much as $119 billion, which is roughly RMB 802.9 billion. On the process front, SpaceX has already reached a cooperation with Intel. The factory’s chips will use Intel’s advanced 14A process.
The entire plant area covers more than 100 million square feet, and it can provide at least 3,000 high-paying jobs. The Texas government has also set up special industry subsidies to support the project’s implementation. Industry analysts say this vertically integrated chip production capacity layout will comprehensively support the long-term computing power needs of Musk’s automotive, humanoid robot, and space AI businesses.
On August 6 local time, SpaceX and Tesla, both under Musk’s umbrella, jointly announced that Terafab, a super chip manufacturing hub, will be established in Grimes County, Texas, USA. The first phase will involve an investment of $16.8 billion.
The factory is positioned as the largest integrated wafer facility worldwide. It will combine the full chip value chain—chip design, manufacturing, packaging, and testing. The core goal is to achieve self-sufficiency in chips and break away from reliance on third-party chip suppliers. The official has not yet disclosed the production capacity for Phase 1. In the long term, the plan is to produce 1 terawatt of computing power per year (1 terawatt = 1,000 gigawatts). The chips produced will be supplied to Tesla’s autonomous driving, the Optimus humanoid robot, and SpaceX’s space data centers.
On a social media platform, Musk said directly that Terafab would be the top single building worldwide in both scale and value. The project will be built in multiple phases. Once fully completed, the total investment could reach as much as $119 billion, which is roughly RMB 802.9 billion. On the process front, SpaceX has already reached a cooperation with Intel. The factory’s chips will use Intel’s advanced 14A process.
The entire plant area covers more than 100 million square feet, and it can provide at least 3,000 high-paying jobs. The Texas government has also set up special industry subsidies to support the project’s implementation. Industry analysts say this vertically integrated chip production capacity layout will comprehensively support the long-term computing power needs of Musk’s automotive, humanoid robot, and space AI businesses.