SpaceX announced this week that Terafab, a massive semiconductor fabrication plant, will be built in Grimes County, Texas. SpaceX says the facility, which will be a vertically integrated factory with more than 100 million square feet of manufacturing space, housing logic, memory, and advanced packaging, is starting with an initial $16.8 billion in capital investment and is expected to eventually employ at least 3K people. Commenting on the announcement, Elon Musk declared that “Terafab Texas will be the largest and most valuable building on Earth by far.”
SpaceX is building Terafab to supply its enormous demand for compute, with combined SpaceX and Tesla chip requirements expected to exceed 1 TW, significantly larger than current global supply. The chips produced there will be used for Tesla’s Optimus robots and Cybercabs, alongside SpaceX’s planned space-based data centers. The planned building will be historic in both size and output, with Musk claiming that Terafab will be “50 times the size of the Pentagon when complete.”
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