SpaceX and Tesla have officially chosen Grimes County, Texas, as the site for the “Terafab,” a massive semiconductor manufacturing facility projected to span over 100 million square feet and rank as the largest building on Earth. Announced by state officials and company leadership, the multi-phase project aims to tackle the widening global shortage of artificial intelligence hardware by vertically integrating logic, advanced packaging, and memory production under one roof. The mega-facility is designed to generate over one terawatt of compute capacity annually to supply high-power processors for SpaceX’s space-based data centers, as well as edge-inference chips required for Tesla’s autonomous Cybercabs and Optimus humanoid robots. Backed by a $30 million Texas Enterprise Fund grant and local tax incentives, the initial phase represents a staggering capital investment and is anticipated to create at least 3,000 high-paying regional jobs. Company executives emphasize that bringing domestic semiconductor fabrication to the Lone Star State is an essential step to support future technological scaling both on Earth and in orbit.
Elon Musk’s SpaceX and Tesla Select Texas to Build Massive Gigantic “Terafab” AI Chip Plant, Poised to Become the World’s Largest Structure
