# Tesla, SpaceX confirm 'Terafab' chip fab site, $16.8B first phase

_Thursday, August 6, 2026 at 8:00 AM EDT · Infrastructure · Developing · Tier 2 — Notable_

![Tesla, SpaceX confirm 'Terafab' chip fab site, $16.8B first phase — Primary](https://i0.wp.com/electrek.co/wp-content/uploads/sites/3/2026/08/Tesla-SpaceX-terafab.jpeg?resize=1200%2C628&quality=82&strip=all&ssl=1)

Tesla and SpaceX confirmed the Terafab chip fab site will be in Grimes County, Texas. Tesla said both companies will need far more chips than current and future global production can supply.

The initial phase is estimated at $16.8 billion and the finished site will span more than 100 million square feet, which the companies call the largest chip manufacturing facility on the planet. SpaceX laid out the plan in an update on its site Thursday, and Tesla echoed it on X. At least 3,000 people would work there, most of them local hires.

## Sources

- [electrek.co](https://electrek.co/2026/08/06/tesla-spacex-terafab-grimes-county-16-8-billion/)

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