SpaceX and Tesla are partnering to construct a massive semiconductor manufacturing facility in Grimes, Texas. Known as Terafab Texas, the project is intended to become the largest building in the world, spanning over 100 million square feet.
The factory will handle the manufacturing, packaging, and testing of advanced logic and memory chips. These components are critical for hardware such as Tesla's Optimus robots and self-driving Cybercabs. Additionally, the facility will produce chips required for SpaceX's space-based data centers.
Elon Musk noted that the project is a response to the growing gap between global chip supply and the specific demands of his companies. While they continue to work with existing suppliers, the scale of this new plant is intended to ensure future hardware production is not hindered by shortages.
The initial phase of the project carries an estimated cost of $16.8 billion, though filings indicate this could increase significantly over time. The plant is expected to create over 3,000 jobs in the region. This development follows the company’s recent ground-breaking for a research facility at the Giga Texas campus, which serves as a precursor to this larger effort.
For context, the current largest building in the United States is the Pentagon, and the world's largest is the New Century Global Center in China. Terafab Texas will significantly exceed the size of these existing structures once complete.