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August 6 · 2026

Terafab Texas — SpaceX + Tesla Vertically-Integrated Semiconductor Fab

Secures the silicon substrate for AI at multi-terawatt scale on Earth and in orbit — the missing domestic manufacturing link between Starship-class deployment, robotics, and space-based data centers.

SpaceX announced Terafab will be built in Grimes County, Texas: a vertically integrated advanced semiconductor complex combining logic, memory, packaging, and testing under one roof, designed at more than 100 million square feet. Joint SpaceX–Tesla program (terafab.ai); Tesla earlier broke ground on a precursor research fab at Giga Texas North Campus. Initial phase approximately $16.8 billion capital investment and at least 3,000 jobs. Output targets edge/inference chips for Optimus and Cybercabs plus high-power devices for SpaceX space-based data centers. Official update cites combined SpaceX+Tesla compute demand exceeding 1 terawatt versus current global supply. Supported by Texas TEF and JETI programs; industrial water from Gibbons Creek Reservoir with reuse and on-site treatment plans.

Source: spacex.com/updates#terafab + @SpaceX (August 6, 2026); gov.texas.gov

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