SpaceX and Tesla Confirm $16.8B 'Terafab' Chip Factory in Grimes County, Texas

SpaceX and Tesla confirmed on August 6, 2026 that their jointly developed 'Terafab' semiconductor plant will be built in Grimes County, Texas, near College Station outside Houston, with a first-phase capital investment of $16.8 billion and at least 3,000 new jobs. Texas Governor Greg Abbott announced a $30 million Texas Enterprise Fund grant to support the project. The planned facility — over 100 million square feet, which Musk called the largest and most valuable building on Earth — will consolidate logic and memory chip manufacturing, packaging, and testing under one roof to supply Tesla's Optimus robots and Cybercab, and SpaceX's AI/Colossus compute buildout and space-based data centers. The announcement firms up an earlier, larger $55–119B proposal SpaceX filed for the site in May 2026.