Tesla plans chip manufacturing facility in Texas with $16.8B first phase

Tesla (NASDAQ: TSLA) announced plans to build a chip manufacturing facility called Terafab in Grimes County, Texas, according to a post on X.

The company stated the facility is intended to be the largest chip manufacturing plant ever built, with a goal of producing over one terawatt of compute per year.

Texas Governor announced that the first phase of Terafab represents capital expenditure of over $16.8 billion.

Tesla noted that in April it broke ground on a research fabrication facility on the North Campus of its Giga Texas site, which it described as a precursor to Terafab.

The company stated that both Tesla and SpaceX will require more chips than current and future global production can supply, citing this as the reason for the planned facility.

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