Elon Musk's companies Tesla and SpaceX plan to build Terafab, a joint semiconductor factory in Grimes County, Texas, costing $16.8 billion in its first phase. The project near Houston aims to become the largest building in the world.
The planned complex will exceed 100 million square feet, making it more than five times larger than the New Century Global Center in China, which is currently considered the largest building in the world. It will also far exceed the size of the Pentagon, Apple Park, and the Mall of America. Musk described Terafab as the largest and most expensive building on Earth, writing in another post that it will be dazzlingly beautiful and that they aim to build a sci-fi city.
Chip Production and Technical Goals
Tesla stated that the project addresses a critical semiconductor supply shortage, noting that both Tesla and SpaceX will require far more chips than current and future global production can supply. The company set a goal to produce more than 1 terawatt of computing power per year. The facility will combine logic chip and memory production, packaging, and testing under one roof.
SpaceX noted that the facility will operate as an advanced semiconductor manufacturing plant to bridge the gap between current global chip supply and future demand for computing power. The chips manufactured at the site will supply Tesla Optimus robots, autonomous Cybercabs, and SpaceX space data centers. The project is expected to create at least 3,000 jobs.
Investment and Local Opposition
Total investment in the complex could reach up to $119 billion. The facility will be constructed in the Gibbons Creek Reservoir area, where SpaceX stated it will draw water directly from the reservoir rather than from underground reserves.
Grimes County residents are opposing the development over tax incentives and a lack of transparency. Meanwhile, the state of Texas has already approved a $30 million grant to SpaceX for the project.
