Tesla and SpaceX to build Terafab semiconductor plant in Texas
International Business Times AU
Tesla and SpaceX confirmed a joint venture called Terafab to build a semiconductor manufacturing campus in Grimes County, Texas, with a first-phase investment of $16.8 billion and plans for more than 100 million square feet of manufacturing space. The plant aims to produce advanced 2-nanometer chips, targeting up to 50 times current annual AI chip volumes and more than 1 terawatt of compute per year, with separate chips for vehicles and space systems; Intel and xAI are reported participants. The initial phase is expected to create about 3,000 jobs and has prompted scrutiny over long-term tax payment arrangements and total project costs.
Terafab's first phase costs $16.8 billion and targets 2-nanometer chips.
Context
Global chip demand has risen and suppliers are stretched. The companies plan Terafab to expand production capacity and may add phases and spending later.
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