Elon Musk announces $15 billion Texas chip plant joint venture with Intel
Elon Musk said his companies will partner with Intel to build a Terrafab chip factory in Grimes, Texas, backed by over $15 billion in investment.
During a livestreamed X Takeover gathering near Tesla’s Austin gigafactory, Elon Musk announced plans for a Terrafab semiconductor plant in Grimes, Texas, formed through a joint venture that includes Tesla, SpaceX and Intel Corp. Although Musk admitted he currently lacks chip-making knowledge, he expressed confidence that his firms’ custom-equipment capabilities could eventually surpass rivals. The project is slated to receive an initial investment exceeding $15 billion and a $30 million grant from the Texas Enterprise Fund, with an expected workforce of 3,000.
The massive 100-million-square-foot complex will be constructed in phases on a site of about 3,000 acres, while SpaceX already controls more than 13,000 acres nearby. The announcement coincided with Tesla’s strong Q3 vehicle deliveries and its plan to spend over $25 billion this year on factory expansion and a robotaxi business. Appearances at the event also featured musician Nicki Minaj and Musk’s mother, Maye.
Why it matters
The venture could reshape U.S. chip supply chains and bring thousands of jobs to Texas.
How this story developed
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