Tesla and SpaceX officially broke ground on Terafab on August 6, 2026 — a $16.8 billion semiconductor megafactory in Grimes County, Texas, built to supply chips for Optimus robots, Cybercabs, and SpaceX’s planned orbital data centers.
The initial phase of the fab unit is expected to cost $16.8 billion, though SpaceX had previously estimated it would cost $55 billion. The fab is intended to build chips for data centers that will be run by SpaceX and its xAI subsidiary.
Terafab will be a single integrated facility covering logic, memory, packaging, and testing for Optimus robots, Cybercab robotaxis, and SpaceX orbital data centers.
SpaceX and Tesla (NASDAQ: TSLA) have jointly announced the construction of a massive semiconductor manufacturing facility called Terafab, to be built in Grimes County, Texas, just north of Houston.
Elon Musk's Terafab project presents ASML with an unusual dilemma: the Texas mega-fab could become one of the largest single buyers of ASML's EUV lithography machines — or it could try to bypass ASML entirely.
Driven by Musk’s vision of a ... AI data centers, the Terafab project aims to fill a massive computing shortfall that current global chip production cannot support. It will mass-produce custom artificial intelligence chips engineered to power ...
Musk has had his sights set on this project since March, when Tesla and SpaceX first introduced the Terafab concept with an even bigger headline figure of $25 billion. That number has since been revised down to the current $16.8 billion for ...
Following months of site selection rumors, both companies confirmed that TERAFAB will be built in Grimes County, Texas, located roughly an hour northwest of Houston and two hours from Gigafactory Texas.
Tesla has also expanded aggressively in the state, moving its headquarters to Austin in 2021 and continuing to grow its Gigafactory campus, which is expected to exceed 15 million square feet by the end of 2026.
... Reuters said Terafab is intended to narrow the gap between global chip supply and the more than 1 terawatt of computing power that SpaceX and Tesla expect to need in the coming years, framing the facility as capacity for AI chips used “on ...
SpaceX merged with Musk’s AI company xAI (which has been renamed SpaceXAI) earlier this year, bringing its AI efforts and plans for space-based data centers under the same corporate umbrella. SpaceX subsequently went public in June in what became the largest IPO in history. Intel is also expected to contribute to the Terafab project, with the company revealing its involvement in April this year.
The Terafab plan adds semiconductor manufacturing to the facilities needed to support AI computing, including data centers, power infrastructure and specialized industrial plants.
Announced formally in early August 2026, it is a joint venture between Tesla and SpaceX designed to handle the full chip lifecycle — manufacturing, packaging, and testing of advanced logic and memory devices — under one roof.
Terafab is designed to manufacture, package, and test advanced logic and memory chips in-house — the kind that will power Tesla's Optimus humanoid robots, Cybercabs, and next-generation high-performance processors.
It’s a joint project between SpaceX and Tesla, which are both based in Texas. Elon Musk, the CEO of both companies, unveiled Terafab in March, saying his future endeavors would require more chips than the global market could supply.
Elon Musk and SpaceX announced a $16.8 billion Terafab AI chip plant project in Texas, signaling increased multi-year equipment demand for suppliers like Applied Materials. CHIPS Act funding and global subsidies support capital spending for ...
Tesla and SpaceX are committing $16.8 billion to break ground on Terafab, a colossal chip factory outside Houston that could eventually cost $119 billion.
The processor is also expected to feature Qualcomm’s Adreno 850 GPU, which could bring a significant boost to gaming and graphics-intensive workloads. ... A separate benchmark leak has already surfaced for the SM8975, although the early numbers reportedly do not fully reflect the chip’s potential, possibly because of power limitations during testing. That said, a 2nm-class process, 5GHz-plus CPU cores and a new-generation Adreno GPU make the Snapdragon 8 Elite Extreme Gen 6 an intriguing candida