Musk's SpaceX and xAI Launch TeraFab Chip Project, $119 Billion Texas Fab
Elon Musk's SpaceX and xAI in March 2026 announced the joint launch of the TeraFab superchip manufacturing project, a $119 billion integrated wafer fab in Grimes County, Texas. Covering logic chips, memory chips, and advanced packaging on over 100 million square feet, ground construction began within months. Musk first hinted at the project in late 2025, with full details unveiled in March 2026.
Elon Musk announced in March 2026 that his aerospace company SpaceX and artificial intelligence firm xAI would jointly launch a superchip manufacturing project codenamed "TeraFab." The project, located in Grimes County, Texas, is a fully integrated mega-factory encompassing logic chips, memory chips, and advanced packaging processes. Ground construction began within months of the announcement.
Musk first mentioned the project in late 2025, with specific details formally released in March 2026.
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