# Tesla and SpaceX to Invest $16.8B in Texas Chip Factory 'Terafab'

Tesla and SpaceX plan to invest $16.8 billion to begin building Terafab, a chip manufacturing facility in Texas. The project is aimed at securing semiconductor supply for their AI and automotive operations while boosting U.S. chip production. This marks a major infrastructure bet that could reduce reliance on overseas suppliers.

**Importance:** 4/5

## Sources

### Technology
- [TechCrunch](https://techcrunch.com/2026/08/06/tesla-and-spacex-will-invest-16-8b-to-start-building-terafab-chip-factory-in-texas/) — Thu, 06 Aug 2026 15:21:51 +0000