Terafab

Terafab is a proposed vertically integrated semiconductor fabrication campus planned on more than 6,000 acres near the Gibbons Creek Reservoir outside Iola in Grimes County, Texas, roughly midway between Houston and College Station. Backed by SpaceX, Tesla and xAI and announced with Governor Greg Abbott, the project is designed to consolidate logic, memory and advanced chip packaging under a single roof at a scale Elon Musk has described as the world's largest chip-manufacturing facility, with a proposed footprint of 100 million square feet, more than twice the size of Tesla's Giga Texas campus outside Austin. The first phase carries a capital investment of more than $16.8 billion and is expected to create 3,000 jobs, supported by a $30 million Texas Enterprise Fund grant, a Grimes County reinvestment zone with a property-tax abatement, and JETI (Texas Jobs, Energy, Technology and Innovation Act) agreements with Iola ISD and Anderson-Shiro CISD covering an eventual four-phase build-out valued at up to $119 billion. The chips produced are intended to supply Starlink satellites, SpaceX's planned space-based data centers, and Tesla's Optimus robots and self-driving vehicles, with Intel as a foundry partner. The site will draw industrial water from the Gibbons Creek Reservoir rather than local groundwater, supported by a closed-loop recycling system and on-site wastewater treatment, and SpaceX plans on-site natural gas generation and large battery arrays to power the facility. The land was assembled through Wit Tech LLC, an entity associated with xAI, and a precursor research fab is rising on the north campus of Giga Texas.