Tesla and SpaceX to build world's largest chip fab — just as soon as they figure out who's actually building it

Tesla and SpaceX have confirmed Grimes County, Texas as the site for 'Terafab,' a planned semiconductor megafactory with a $16.8 billion first phase and a stated footprint of 100 million square feet — more than ten times the size of TSMC's largest fabs. The facility would combine logic, memory, packaging, and testing to supply chips for Tesla's Optimus robots, Cybercabs, and SpaceX's proposed space-based data centers. However, SpaceX's own IPO filing from May described Terafab as only a 'general framework' with no binding commitments, and Intel is reportedly lined up to handle actual manufacturing. Tesla's near-term chip supply is already secured through Samsung and TSMC, making Terafab a long-term bet on Musk's claim that his companies will eventually need more compute than the entire semiconductor industry produces.