# Construction of Terafab Semiconductor Factory by SpaceX and Tesla Progresses

- Published: 2026-11-09 05:41 UTC
- Section: Machines & Making › Manufacturing
- Tags: Terafab, semiconductor factory, SpaceX, Tesla, chip production
- URL: https://realtech.media/news/rt-ee511acef7ea8667ca4c5466_construction_of_terafab/

**New satellite images reveal the ongoing construction of Terafab, a major semiconductor manufacturing facility by SpaceX and Tesla.**

![Construction of Terafab Semiconductor Factory by SpaceX and Tesla Progresses](https://realtech.media/media/2026/11/bfeb5944092ae695.jpg)
*CIA/NRO/USGS, Wikimedia Commons, Public domain*

New satellite images have surfaced showing the construction of Terafab, a joint project by SpaceX and Tesla aimed at creating one of the largest semiconductor manufacturing facilities in the world. Elon Musk anticipates that full-scale chip production will commence around Q3 2028. Once completed, the facility will encompass over 100 million square feet of manufacturing space, approximately ten times the size of Gigafactory Texas, according to ixbt.com.

The facility will be located in Grimes County, Texas, with initial investments from SpaceX and Tesla estimated at $16.8 billion. The project is expected to employ at least 3,000 people and will feature a complete production cycle, including advanced chip manufacturing, packaging, and testing.

The companies aim to produce up to 1 TW of computing power annually to reduce reliance on external semiconductor suppliers and meet the growing demand for computing equipment. The chips are intended for use in Tesla Optimus robots, Cybercab autonomous vehicles, and SpaceX's data centers.

## Sources

1. [ixbt.com](https://www.ixbt.com/news/2026/11/09/stroitelstvo-gigantskoi-fabriki-terafab-maska-pokazali-iz-kosmosa.html)

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Source: RealTech, realtech.media — https://realtech.media/news/rt-ee511acef7ea8667ca4c5466_construction_of_terafab/