Elon Musk Unveils $16.8B Terafab Chip Project in Texas

Elon Musk and SpaceX are planning a massive new semiconductor facility in Grimes County, Texas, known as Terafab. The project carries an initial price tag of $16.8 billion and aims to cover roughly 100 million square feet. If completed as planned, it will become the largest building on Earth by a wide margin, easily surpassing current record holders like the New Century Global Center in China.

Unlike traditional semiconductor plants that spread production across multiple locations, Terafab will combine logic, memory, and advanced packaging under one roof. This vertical integration is designed to speed up production and supply artificial intelligence chips for both terrestrial use and space missions. The first phase of construction is expected to create 3,000 new jobs in the region.

The project relies heavily on local tax incentives and state backing, with SpaceX filing applications to freeze certain maintenance taxes. State officials, including Governor Greg Abbott, have voiced strong support for the development. While a final groundbreaking date is not yet set, the massive scale of the facility has already caught the attention of markets and tech observers alike.