Musk’s Terafab: A $119B Texas Chip Megafactory Aims to Redefine U.S. Chipmaking

Elon Musk unveiled Terafab, a planned 100‑million‑square‑foot semiconductor megafactory in Grimes County, Texas near Houston, with a $119 billion ceiling and phase‑one commitments of $16.8 billion and 1,800 jobs by 2035. Intel has joined with an undetermined contribution, while SpaceX CFO Bret Johnsen has signed a binding floor of at least $5 billion and 1,800 jobs by 2030–2035. The facility would combine fabrication, packaging and testing of advanced logic and memory chips to address chip bottlenecks for Musk’s ventures, aiming to produce over 1 terawatt of compute annually for edge inference. Groundbreaking could occur in coming years with mass production targeted around 2028; the project includes water sourcing from a reservoir and has drawn mixed local reaction over subsidies and transparency.