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SpaceX, Tesla, and computer manufacturer Intel have proposed a development known as the Terafab at Gibbons Creek in Grimes County, Texas.
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SpaceX, Tesla, and computer manufacturer Intel have proposed a development known as the Terafab at Gibbons Creek in Grimes County, Texas.
GRIMES COUNTY, Texas — Elon Musk's sprawling semiconductor manufacturing plant is officially landing in Texas — and the Lone Star State has now unveiled the terms of its agreement for Terafab's property tax breaks.
Tesla shares have gained 12% over the past month, outpacing Alphabet and Nvidia, driven by progress on the Terafab AI semiconductor project in Texas and the upcoming opening of its Nevada Semi factory. Terafab AI signed a tax-value limitation agreement with a Texas school district covering construction from December 2026 through 2028.
Tesla is also planning a broader move into semiconductor production. Musk introduced Terafab in March as a proposed U.S. facility combining logic chips, memory, packaging, and manufacturing.
Few contemporary industrial projects challenge the conventional definition of architecture as dramatically as Terafab, Elon Musk’s proposed semiconductor megafactory in Texas. Conceived through the combined ambitions of Tesla, SpaceX, xAI and Intel, Terafab is not simply another factory designed to manufacture advanced chips.
Recent ConstructConnect News coverage of the Meta data center expansion in Richland Parish, SpaceX and Tesla’s Texas Terafab plan, and Louisiana’s broader construction market offers additional context on infrastructure demands, workforce competition, and the scale of investment now moving through the region.
With a proposed million satellites from one company alone, experts have flagged collision risk with debris and other spacecraft, and others object to what a cluttered sky does to the night. Eventually Starmind may lean on Terafab, a $119 billion chip manufacturing plant SpaceX is building jointly with Tesla, but NVIDIA carries the near-term timeline.
The company is under pressure to convince investors it will be profitable while it pursues expansion, and it is simultaneously funding other very large projects, including a 16.8 billion dollar AI chip making complex in Texas called the Terafab announced with Tesla.
The company also has begun construction of a chip factory in Grimes County, Texas, known as the Terafab, that will be key to Chief Executive Officer Elon Musk’s vision of vertically integrating its supply chain and launching orbital data centers.
The announcement comes on the heels of SpaceX's massive public offering. The company also recently announced plans to build a "Terafab" chip foundry in Texas that will supply AI processors to its SpaceXAI division.
Tesla (TSLA) stock rises 12% as the company advances its $16.8B Terafab chip project in Texas and prepares to open its Semi factory in Nevada this September.
The initial phase of the Terafab will cost $16.8 billion, while its total costs across all phases could surpass $119 billion. Upon completion, the 100-million-square-foot facility will meet SpaceX and Tesla's projected computing demand of more ...
Johnson says the region doesn’t have enough workers to fill all of those construction roles locally, meaning many will likely come from outside the Brazos Valley, including the Dallas, Houston, Austin and San Antonio areas, during the active construction years. But Johnson says those jobs won’t simply vanish once construction ends. He expects Terafab to attract additional development to the region, meaning an estimated 30 to 40 percent of those construction jobs could stick around for future pro
Shares of Tesla, Inc. (TSLA) have raced ahead of Nvidia and Alphabet so far this month, driven by fresh progress on CEO Elon Musk’s $16.8 billion Terafab chip complex and the approaching opening of Tesla’s Semi factory.
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In August, SpaceX and Tesla - Musk's electric vehicle and robotics firm - announced plans to build a $16.8bn artificial intelligence (AI) chip making complex in Texas called the Terafab.
Terafab is a proposed vertically integrated semiconductor fabrication campus planned on more than 6,000 acres near the Gibbons Creek Reservoir in Grimes County, Texas, roughly midway between Houston and College Station.
Tesla and SpaceX jointly announced a $25 billion Terafab project in Austin in March 2026, with Intel joining the consortium in April 2026. Separately, Samsung’s $73 billion semiconductor program includes capacity earmarked for Tesla, and TSMC’s $56 billion 2026 capex program will absorb additional AI5 wafers.
The other is a capital expenditure line that now runs well above revenue. Terafab, the Grimes County semiconductor complex SpaceX confirmed on August 6, sits at the intersection of both. It is the most ambitious piece of the story and the least contractually binding.
Eventually, Starmind will likely depend on SpaceX's Terafab, a $119 billion joint chip manufacturing plant with Musk's Tesla. In the meantime, however, SpaceX will lean on NVIDIA to meet its expedient timeline.