# SpaceX Tesla Build Terafab Texas

> SpaceX and Tesla's $55 billion Texas factory will make chips for rockets and robots.
- Title: SpaceX Tesla Build Terafab Texas · Jalopnik | Shortify
- Summary: SpaceX and Tesla's $55 billion Texas factory will make chips for rockets and robots. SpaceX and Tesla are building a 100 million square foot semiconductor…
- Keywords: spacex, tesla, terafab, semiconductor, starbase, optimus, texas, grimes county, elton musk, intel, tsmc, gigafactory
- Source: Jalopnik — https://jalopnik.com/2279357/spacex-tesla-terafab-semiconductor-plant-texas
- Author: Michael Frank
- Published: 2026-10-07T02:25:00+00:00
- Read time: 1 min
- Topics: spacex, tesla, terafab, semiconductor, starbase, optimus, texas, grimes county, elton musk, intel, tsmc, gigafactory
## Terafab Texas Factory
SpaceX and Tesla are building a massive 100 million square foot semiconductor factory in Grimes County, Texas.
## Terafab Purpose
The factory will fabricate chips for SpaceX's Starbase rockets and Tesla's Optimus robots.
## Investment Amount
SpaceX plans to invest $55 billion with a potential $119 billion contingency for the Terafab project.
## Intel Partnership
Intel joined SpaceX and Tesla to refactor silicon fab technology for the Terafab project.
## Water and Power Concerns
The factory will draw water from Gibbons Creek Reservoir and use natural gas generators for power.
## Political Controversy
Texas Governor Greg Abbott's office received $1.66 billion in tax breaks for SpaceX in exchange for Musk's $500,000 donation.
## Key takeaway

SpaceX and Tesla are building a 100 million square foot semiconductor factory in Texas that will produce chips for Starbase rockets and Optimus robots.