SpaceX, Tesla Confirm Terafab Site as Chip Demand Outruns Global Supply

SpaceX and Tesla have confirmed Grimes County, Texas, as the permanent site for their Terafab semiconductor manufacturing venture. This confirmation follows a $10 million payment to Grimes County and aims to address the significant chip access problem faced by Elon Musk's companies. Terafab, a collaboration between SpaceX, Tesla, xAI, and Intel, is expected to cost up to $119 billion and target 1 terawatt of annual AI compute capacity, double the current U.S. output.