Elon Musk Announces Construction of the World's Largest Semiconductor Plant in Texas
Entrepreneur Elon Musk unveiled an ambitious plan to build a massive semiconductor complex called "Terafab" in Grimes County, Texas, covering an area of 9.3 million square meters.
Project details
Tesla and SpaceX will combine all chip‑manufacturing stages—from wafer and memory production to packaging and testing—under one roof, reducing reliance on external suppliers. Initial investment exceeds $16.8 billion, potentially rising to about $120 billion upon completion, and creating roughly 3,000 jobs.
The plant aims for an annual computing capacity of over one terawatt, supplying chips for Tesla vehicles, Optimus robots, and SpaceX’s computing and space hardware.
Background and significance
Terafab will dwarf the current world’s largest building, the New Century Global Center in Chengdu, China, by a factor of five. The initiative seeks to strengthen semiconductor supply chains and meet soaring AI demand.
Texas is offering a $30 million grant from its project fund and has filed tax‑incentive requests through the JETI program to keep the venture in the state.
The facility is expected to become a strategic hub for future technologies, with plans to scale production to one million Optimus robots and launch tens of millions of tons of cargo to space each year.
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