Terafab, a semiconductor manufacturing complex owned by SpaceX, Tesla, and xAI, held its official groundbreaking ceremony on October 6, 2026. The facility is situated in Grimes County, Texas, near Iola and the Gibbons Creek Reservoir. Land clearing for the first phase of construction began in August 2026, with formal building work scheduled to commence on December 1, 2026. The project aims to complete construction by the end of 2028.
What it means
The campus spans more than 6,000 acres and will eventually encompass a 100 million square foot footprint. State incentive filings value the total program at up to $119 billion. The first phase of construction involves a capital investment exceeding $16.8 billion and is projected to create 3,000 jobs. Elon Musk has described Terafab as the world’s largest chip-manufacturing facility.
The site will produce logic chips, memory components, and advanced packaging under one roof in four distinct construction phases. Intel serves as the foundry partner for the operation. Initial customers for the manufactured chips include Starlink satellites, SpaceX’s planned space-based data centers, Tesla Optimus robots, and self-driving vehicles. The facility relies on industrial water from the Gibbons Creek Reservoir rather than local groundwater. It utilizes a closed-loop recycling system and on-site wastewater treatment. Power is generated on-site through natural gas facilities and large battery arrays. A precursor research fab is currently under construction at the Giga Texas north campus.
Key facts
- Owners: SpaceX, Tesla, xAI
- Location: Grimes County, Texas
- Groundbreaking date: October 6, 2026
- Formal construction start: December 1, 2026
- Projected completion: End of 2028
- Total site area: More than 6,000 acres
- Planned footprint: 100 million square feet
- Phase one investment: More than $16.8 billion
- Full program value: Up to $119 billion (per state filings)
- Phase one jobs: 3,000
- Foundry partner: Intel
Source: Markets of Tomorrow