SpaceX has unveiled plans to build a large-scale semiconductor manufacturing facility in Grimes County, Texas, bringing chip fabrication, advanced packaging and testing together within a single vertically integrated site.
Known as Terafab, the project will involve an initial investment of more than $16.8 billion and is expected to create at least 3,000 jobs during its first phase.
According to the company, the facility will manufacture chips for Tesla's Optimus robots, autonomous Cybercabs and SpaceX's future space-based data centres.
The planned facility will integrate logic manufacturing, memory production, advanced packaging and testing, reflecting a growing industry trend towards vertically integrated semiconductor manufacturing.
Bringing these processes together is intended to streamline production while supporting demand for high-performance computing applications.
According to SpaceX, demand from both SpaceX and Tesla is expected to exceed one terawatt of computing capacity, prompting the company to expand its in-house semiconductor manufacturing capabilities.
The project has received support from the State of Texas, including a $30 million grant from the Texas Enterprise Fund, and qualifies under the state's Jobs, Energy, Technology and Innovation (JETI) programme.
Local authorities expect the investment to generate additional construction, supplier and technology sector employment.
If completed as planned, Terafab would represent one of the largest semiconductor manufacturing investments in the United States, strengthening domestic capabilities in advanced chip production and packaging while supporting the growing demand for AI and high-performance computing infrastructure.
