SpaceX and Tesla Break Ground on $16.8B Terafab in Texas

SpaceX and Tesla have started building Terafab, a semiconductor manufacturing facility spanning over 100 million square feet in Grimes County, Texas. The site will vertically integrate manufacturing, packaging, and testing of advanced logic and memory chips. Combined chip demand is expected to exceed 1 terawatt of compute power, surpassing current global supply capabilities. Produced chips will power edge computing devices including Tesla’s Optimus humanoid robots and Cybercabs, as well as high-power chips for SpaceX’s planned space-based data centers. The initial $16.8 billion investment will

• Terafab will cover over 100 million square feet of manufacturing space.
• Initial joint investment of $16.8 billion for chip production capacity.

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