Tesla and SpaceX will invest $16.8B to start building ‘Terafab’ chip factory in Texas
TechCrunch·August 6, 2026
Tesla and SpaceX will invest $16.8 billion in a new chip factory, known as "Terafab", to be built in Texas. The massive project will be located just north of Houston, marking a significant development for the companies. The investment underscores the companies' commitment to expanding their manufacturing capabilities and reducing reliance on external suppliers. The Terafab factory is expected to play a crucial role in producing advanced chips for Tesla and SpaceX's various projects.
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