Elon Musk Announces $15 Billion Terrafab Semiconductor Plant

Elon Musk announced the development of Terrafab, a semiconductor manufacturing facility in Grimes, Texas, during the X Takeover event in Austin. The project is a joint venture between Tesla, SpaceX, and Intel, representing an initial investment exceeding $15 billion.

The facility will span 100 million square feet across 3,000 acres and is expected to create approximately 3,000 jobs. To support the development, the Texas Enterprise Fund approved a $30 million grant. The initiative aims to expand manufacturing capacity for autonomous technologies and artificial intelligence.

Musk acknowledged that he currently lacks direct expertise in chipmaking and noted that the process may take several years to master. However, he stated that the experience his companies possess with customized manufacturing equipment could eventually allow Terrafab to outperform industry rivals.