SpaceX is spending $16.8 billion on a Texas chip fab Musk says will be '50 times the size of the Pentagon'
SMRTR summary
Fifty times the size of the Pentagon. That's how Elon Musk describes TeraFab, a massive semiconductor factory planned for Grimes County, Texas, backed by a $16.8 billion commitment from SpaceX and Tesla.
The facility, designed to manufacture chips for advanced vehicles, space computing, and humanoid robots, could exceed 100 million square feet at full build-out. To put that in perspective, the Pentagon, Apple Park, Mall of America, and Tesla's Giga Texas combined total just 25 million square feet.
"The combined SpaceX and Tesla demand for chips is expected to be in excess of 1 terawatt of compute," SpaceX noted in announcing the project.
Intel has since joined the venture, with plans to use its cutting-edge 14A manufacturing process. Local commissioners approved a full property tax abatement in June 2026. The project could eventually cost up to $119 billion, employ at least 3,000 workers, and reshape the American semiconductor landscape entirely.
SMRTR provides this summary for quick context. The original article belongs to TechRadar.
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