Musk splashes out over ten billion dollars to build! The world's largest chip factory will cover over 9 million square meters.

Recently, the Terafab super chip factory, jointly promoted by Musk's SpaceX and Tesla, has revealed key new progress in its energy infrastructure construction.

This semiconductor project, with a planned manufacturing area exceeding 100 million square feet (equivalent to 9.3 million square meters), will include a self-built power generation system to ensure production electricity supply.

At a public meeting in Grimes County, Texas, Riley Trettel, who oversees energy and data center operations at SpaceX, stated that the factory will achieve power self-sufficiency. The project plans to build a gas-fired power plant and deploy large-scale energy storage battery arrays.

According to the plan, civil engineering, foundation work, and infrastructure projects are about to begin rapidly, significantly accelerating the project's pace.

SpaceX and Tesla officially confirmed that Terafab will be located in Grimes County, Texas. The first phase of the project carries a construction cost of $16.8 billion, is expected to create 3,000 jobs, and qualifies for a $30 million Texas Enterprise Fund government grant.

The factory adopts a vertical integration model, completing the entire process of manufacturing, packaging, and testing for advanced logic chips and memory chips within the same facility.

According to the product plan, the factory will primarily produce two categories of chips: one category will supply Tesla electric vehicles and Optimus humanoid robots, while the other will be dedicated to SpaceX's space business.

Notably, in April this year, Intel officially joined the project, providing technical support in chip design, manufacturing, and packaging to further solidify the project's technical foundation.

Musk has publicly stated that the current iteration speed of the semiconductor industry can no longer keep up with the chip demand from his own businesses and the broader tech industry. Geopolitical supply chain risks are also a major driver behind building in-house chip manufacturing capacity.