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Musk’s latest moonshot: a fab with no chill
Elon Musk is apparently done thinking in normal factory sizes. According to a Fortune report, Tesla and SpaceX are preparing to break ground on Terafab in Grimes County, Texas — a semiconductor plant planned to stretch across 100 million square feet.
That’s not a typo. It would be more than five times bigger than Chengdu’s New Century Global Center, which currently holds the floor-area crown at 18.9 million square feet. So yes, this is less “factory” and more “industrial city that also makes chips.”
Why investors should even care
The pitch is pretty simple: make more of the stuff yourself, and stop depending on the outside world so much.
Terafab is supposed to combine:
- logic
- memory
- packaging
- testing
All in one place. The goal is to cut supply-chain headaches while pumping out more than 1 terawatt of AI compute hardware a year for Tesla’s Cybercab fleet, Optimus robots, and SpaceX infrastructure.
Tesla gets the shiny toys, SpaceX gets the space toys
Musk also said the facility’s AI compute output would be roughly 25% for Tesla Optimus and 75% for AI spacecraft. Translation: Tesla gets the robot glow-up, while SpaceX gets the interplanetary homework.
For investors, this is classic Musk: wildly ambitious, wildly expensive, and potentially transformative if it works. But until there’s dirt moving and not just grand talk, it’s still a vision — not revenue.
Big picture: if Musk can actually pull off a mega-fab like this, he’s not just making cars or rockets anymore. He’s trying to own the chip stack too.