← All videos

Tesla and SpaceX Advance $16.8 Billion Terafab Chip Project in Texas

Block News International Published Aug 18, 2026 Added 2w ago 1:10 11 views Open on YouTube ↗

Description

Tesla and SpaceX are moving ahead with Terafab, a major semiconductor manufacturing project planned for Grimes County, Texas, with a $16.8 billion first-phase investment.

In this Block News International recap, we examine plans for more than 100 million square feet of manufacturing space, bringing advanced logic chips, memory, packaging, and testing together within a vertically integrated complex. The first phase is expected to create at least 3,000 jobs.

The facility is intended to support Tesla’s AI ambitions, including processors for Cybercabs and Optimus robots, while also producing high-power chips for SpaceX’s proposed space-based data centers.

Texas filings outline as many as four potential phases, with total investment reaching up to $119 billion if the wider development is completed. The project could give Musk’s companies greater control over their semiconductor supply, although outside chip suppliers are still expected to remain important.

Watch the full recap to learn h

Transcript

Read auto-generated transcript (221 words)

Kind: captions Language: en Tesla and SpaceX are moving ahead with Terafab, a massive semiconductor manufacturing project planned for Grimes County, Texas. The project's [music] first phase involves an initial investment of $16.8 billion and is expected [music] to create at least 3,000 jobs. Plans call for more than 100 million square [music] feet of manufacturing space, bringing advanced logic chips, memory, packaging, [music] and testing together within one vertically integrated complex. The facility is intended to supply processors for Tesla's self-driving [music] cyber cabs and Optimus robots, alongside high-power chips >> [music] >> designed for SpaceX's proposed space-based data centers. Texas filings outline four potential phases with total [music] investment reaching as much as $119 billion if the wider development is completed. [music] Terafab could give Musk's companies greater control over their AI hardware supply, but outside semiconductor providers are still expected to remain important as the project develops. For more, visit Block News [music] International.

Related coverage