Elon Musk announced on August 6, 2026, that Tesla and SpaceX are building Terafab a 100-million-square-foot semiconductor fabrication complex in Grimes County, Texas, that Musk claims will be the largest and most valuable building on Earth.
The initial phase represents a $16.8 billion capital investment and will create 3,000 new high-paying jobs, backed by a $30 million Texas Enterprise Fund grant announced by Governor Greg Abbott. Total investment across all phases could exceed $119 billion, according to a May SpaceX filing.
The vertically integrated facility will handle logic manufacturing, memory production, and advanced packaging under one roof using Intel's next-generation 14A process. Terafab is targeting more than one terawatt of AI compute capacity annually to power Tesla's Optimus robots, Cybercabs, and SpaceX's space-based data centers. Musk claims the finished complex will be roughly 50 times the size of the Pentagon.
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x.com user @ElonMusk.
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