Tesla, SpaceX Partner With Intel on Multi-Billion-Dollar Texas Terafab Chip Plant

Tesla and SpaceX are partnering with Intel to build the Terafab semiconductor plant in Grimes County, Texas. Backed by an initial capital commitment exceeding $15 billion—with Phase 1 pegged at $16.8 billion—the initiative also receives a $30 million grant from the Texas Enterprise Fund and aims to create roughly 3,000 jobs. Elon Musk announced the facility targets about 10 chip designs annually to eventually support 1 terawatt of computing power. The partnership provides a major technical endorsement for Intel Foundry, which posted a $2.1 billion operating loss on $5.8 billion in revenue in the second quarter.