Musk backs a Texas megafab: Terafab, a $119B chip campus near Houston

Elon Musk and SpaceX/Tesla disclosed Terafab, a proposed 100-million-square-foot semiconductor megafactory in Grimes County, Texas, north of Houston, intended to centralize chip design, fabrication, packaging and testing to ease global supply bottlenecks. Phase one commitments total $16.8 billion with a binding floor of at least $5 billion and 1,800 jobs by 2030–2035; Intel has joined, though its exact contribution is unclear. The project carries a planned ceiling of up to $119 billion across multiple phases, with early production possible in 2027 and mass production targeted for 2028. The site will draw water from a nearby reservoir, and local reaction is divided amid incentives and land-use concerns.