Elon Musk's SpaceX Is Building One Of The World's Largest Factories

• 7.10.2026, 20:48

Chips will be manufactured there.

SpaceX is building a Terafab chip manufacturing plant in Grimes County, Texas (U.S.). The construction site is already visible on Google Maps.

This was reported by Jalopnik.

On its website, SpaceX refers to Terafab as a “state-of-the-art semiconductor lab.” The facility will cover an area of 9.3 million square meters, making it one of the largest manufacturing sites in the world.

Having its own factory will give SpaceX full control over the production of the computing equipment the company needs. These chips are intended, in particular, for Tesla vehicles and Optimus robots, Reuters reported in April. At that time, the company began construction of a research center at the “Gigafactory” in Austin, which was the first step toward creating Terafab.

The factory will draw water from the Gibbons Creek Reservoir and generate electricity using gas-fired generators. This sparked outrage at public hearings.

Over the summer, SpaceX Chairman and CEO Elon Musk explained to the Texas governor’s office that Grimes County was a convenient location because Starlink satellite antennas are already manufactured in the state. In addition, the plant will be located relatively close to the Starbase spaceport in Brownsville.

In May, SpaceX submitted an application to the county outlining a $55 billion investment in Terafab, with the potential to increase to $119 billion if necessary. In April, Intel announced a partnership with SpaceX aimed at helping to modernize silicon chip manufacturing technology. And on October 3, Musk confirmed that Taiwan’s TSMC is also in talks to participate in the project.