Elon Musk has outlined plans for Terafab, a 100-million-square-foot semiconductor manufacturing complex in Grimes County, Texas that SpaceX and Tesla say will produce more than 1 terawatt of compute annually. The first phase carries a capital investment of more than $16.8 billion and is expected to create 3,000 jobs, according to a press release from Texas Governor Greg Abbott. Musk described the project as a vertically integrated chip factory that would bring logic, memory, advanced packaging, packaging and testing into a single operation, aimed at producing AI chips at scale for use on Earth and in space. The facility would dwarf the current largest building by floor space, Chengdu’s New Century Global Center at about 18.9 million square feet. The plan also highlights the financing strain behind Musk’s expansion strategy: SpaceX, which went public in June after raising $75 billion by selling 555.56 million shares at $135 each, later reported a $541 million quarterly loss on $7.8 billion in revenue. Terafab has filed eight applications for JETI (Texas Jobs, Energy, Technology, and Innovation, a state incentive program) support and local property tax limitations, saying Texas must remain competitive with jurisdictions such as Arizona.