Elon Musk plans to build a large-scale chip manufacturing plant costing up to $119 billion

Elon Musk plans to build a large Terafab plant in the United States. The plant will produce chips optimized for artificial intelligence, including those for satellite data centers.

Terafab will be located in Grimes County, Texas, near Houston. It will manufacture processors, logic, and memory devices designed for AI models and supply them to SpaceX and Tesla.

The plant's products will be used in Optimus robots, Cybercab autonomous taxis, and Tesla's autopilot systems, as well as in SpaceX's AI-driven space infrastructure projects.

According to the project plan, the total area of Terafab's buildings will exceed 100 million square feet—equivalent to 9.3 million square meters. The facility is expected to house a full-cycle complex for testing, refining, and producing chips.

The future plant will create at least 3,000 jobs, including positions for local residents. Previously, Intel announced its participation in the project as part of plans to expand contract chip manufacturing for other companies.

In the first phase, SpaceX and Tesla plan to invest $16.8 billion in production. Total investments upon full implementation of the project could reach $119 billion.

Source: Reuters