SpaceX, Tesla to Build $16.8 Billion AI Chip Manufacturing Complex in Texas BIRMINGHAM, Mich. — SpaceX and Tesla plan to invest an initial $16.8 billion to build a massive semiconductor manufacturing complex in Texas that will produce advanced artificial intelligence chips for applications ranging from humanoid robots to autonomous vehicles and space-based data centers. The facility, called Terafab, will be located in Grimes County and will manufacture, package and test advanced logic and memory chips under one roof. According to SpaceX, the plant is expected to employ at least 3,000 people, with future expansion phases potentially increasing the total investment substantially. The companies say the chips produced at Terafab will power Tesla's Optimus humanoid robots and Cybercab autonomous vehicles, as well as high-performance processors for SpaceX's planned space-based data centers. The vertically integrated manufacturing strategy is intended to help secure semiconductor capacity as demand for AI computing continues to grow. SpaceX said the facility is designed to help meet the more than 1 terawatt of computing power the two companies expect to require in the coming years. Construction follows Tesla's groundbreaking earlier this year on a research facility at its Giga Texas campus and builds on SpaceX's growing manufacturing footprint across Texas. Looking for quick answers on assembly and manufacturing topics? Try Ask ASM, our new smart AI search tool. Ask ASM Looking for a reprint of this article? From high-res PDFs to custom plaques, order your copy today!