Vertical integration stories

Aug 6, 2026

Tesla and SpaceX announce $16.8B semiconductor plant in Grimes County, Texas

Tesla and SpaceX confirmed Thursday they will build 'Terafab,' a vertically integrated semiconductor fabrication facility in Grimes County, Texas, near College Station, with an initial investment of $16.8 billion. Governor Greg Abbott announced the project, which will be located at the site of the former Gibbons Creek Power Plant.

Aug 6, 2026·11 sources

Tesla and SpaceX announce $16.8B semiconductor plant in Grimes County, Texas

Aug 6, 2026·6 sources

Top claims

▪The planned Terafab facility is designed to span more than 100 million square feet of manufacturing space.
▪The Terafab plant will produce chips optimized for edge computing in Tesla's Optimus robots and Cybercabs, and high-power processors for SpaceX's space-based data centers.
▪The Terafab facility is expected to employ at least 3,000 people, drawing workers from Grimes County and neighboring Brazos County.

Subtopics

Semiconductor manufacturing Compute, chips & AI infrastructure Industrial investment

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Tesla and SpaceX announce $16.8B semiconductor plant in Grimes County, Texas

Tesla and SpaceX announce $16.8B semiconductor plant in Grimes County, Texas

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