Tesla Motors has announced through a social media post on X that its upcoming Terafab facility will be situated in Grimes County, Texas.

The company stated that the combined demand for chips from both Tesla Motors and SpaceX will far exceed the current and future global production capacity available. The Terafab is described as the "largest chip manufacturing facility ever built," with a targeted goal of producing over one terawatt of computing power annually.

Texas Governor Greg Abbott, in a separate statement, confirmed that the first phase of the Terafab project involves capital investment exceeding $16.8 billion and is expected to create 3,000 new jobs. Furthermore, the Texas Enterprise Fund has allocated a $30 million grant to SpaceX in support of the initiative.