Overview
- SpaceX and Tesla on Thursday unveiled plans for Terafab, a vertically integrated semiconductor complex in Grimes County with a first‑phase budget of about $16.8 billion and a footprint the companies say will exceed 100 million square feet.
- The firms say Terafab will make, package and test advanced logic and memory chips tailored for Tesla’s Optimus robots, self‑driving Cybercabs and SpaceX’s planned space‑based data centers to meet projected compute demand.
- Texas approved a $30 million Texas Enterprise Fund grant for the project and Grimes County reported a contingent 100% property tax abatement tied to investment and job milestones, terms that have drawn hundreds of residents to protest at county meetings.
- Intel has confirmed it will participate in Terafab but has not specified its role, and SpaceX says the site will use water from the nearby Gibbons Creek Reservoir while powering the facility with on‑site natural gas plants and very large battery arrays.
- Public filings show shifting cost estimates across multiple phases—earlier figures ranged from $25 billion to $55 billion and filings suggest a potential multi‑phase total up to $119 billion—so permitting, partner roles and long‑term financing remain unresolved.