SpaceX and Tesla Invest $16.8 Billion in Texas Terafab

SpaceX and Tesla Inc. announced a joint initial investment of $16.8 billion to construct Terafab, an advanced semiconductor manufacturing complex in Grimes County, Texas. The vertically integrated facility is designed to produce logic and memory devices for Tesla Inc.'s Cybercabs and Optimus robots, as well as space-based data centers for SpaceX. The companies aim to bridge the gap between current global chip supplies and a projected compute demand exceeding one terawatt.

Planned to exceed 100 million square feet, the facility will handle the entire lifecycle of chip production, including design, manufacturing, packaging, and testing. While the starting investment is $16.8 billion, filings from SpaceX indicate that total spending across multiple phases could reach $119 billion. Intel Corporation has also stated it will contribute to the project.

The announcement follows a county meeting where local residents expressed concerns over tax breaks and a lack of transparency regarding the project's development.