
Something enormous is taking shape in Texas.
And when Elon Musk says enormous, he does not mean another factory with a slightly bigger parking lot.
Tesla confirmed Thursday that a project called Terafab will be built in Grimes County — bringing Tesla, SpaceX and xAI together for what the companies describe as the largest chip-building effort in the world.
Terafab will be built in Grimes County, Texas
— Tesla (@Tesla) August 6, 2026
In April, we broke ground on our research fab on the North Campus of Giga Texas – the precursor to Terafab.
Both Tesla & SpaceX will need far more chips than current & future global production can supply.
This is why we're building… pic.twitter.com/je4jKXuQrY
The official Terafab announcement says the facility will produce logic chips, memory and advanced packaging under one roof.
Tesla says its research fab, which broke ground on the north side of Giga Texas in April, will serve as the precursor. Terafab would then scale that work into a much larger supply operation for Tesla, SpaceX and xAI.
The companies say their future chip needs will outrun the supply the rest of the world can provide. That turns the






