TESLA
JUST IN: SPACEX HAS PROPOSED $55 BILLION TO BEGIN CONSTRUCTION OF MUSK'S "TERAFAB" SEMICONDUCTOR FACILITY IN TEXAS, WITH TOTAL CAPITAL INVESTMENT POTENTIALLY REACHING $119 BILLION
The project, as Per Bloomberg:
- Joint venture between SpaceX and Tesla $TSLA
- Located near Gibbons Creek Reservoir in Grimes County, Texas
- Initial capital investment: $55 billion
- Total potential investment if all phases complete: $119 billion
- Public hearing scheduled for June 3
The strategic targets:
- Produce 2 nanometer chips, the cutting edge that currently only TSMC $TSM and Samsung have at scale
- Support 1 terawatt of computing power per year at full scale
- Chips intended for Musk's robotics, space, and AI projects
Musk's framing from March:
"We either build the Terafab or we don't have the chips, and we need the chips, so we build the Terafab."
Musk's team has reached out to Applied Materials $AMAT, Tokyo Electron, and Lam Research $LRCX for equipment quotes, with one person told to move at "light speed."
If executed at the proposed scale, Terafab would rank among the largest semiconductor capital projects ever announced in the United States.
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