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SpaceX and Intel to build a semiconductor fabrication plant in TX. Bye-bye Taiwan?

Posted on 8/7/26 at 8:07 am
Posted by stout
Porte du Lafitte
Member since Sep 2006
184359 posts
Posted on 8/7/26 at 8:07 am
Will this be the catalyst for us to tell China they can have it?










quote:

Terafab is a planned massive, vertically integrated semiconductor manufacturing complex in Grimes County, Texas, jointly developed by SpaceX and Tesla alongside partners like Intel. The first phase carries an initial investment of $16.8 billion, aiming to produce over one terawatt of AI computing capacity annually.

Location and Scale

Site: Planned for Grimes County, Texas (near the former Gibbons Creek Power Plant site outside College Station).

Size: Expected to span a colossal 100 million square feet across a roughly 2,300-acre footprint.

Jobs: Projected to create more than 3,000 direct high-tech and operations jobs.

Core Purpose and Products

Under One Roof: Consolidates chip design, advanced logic and memory fabrication, packaging, and testing into a single continuous pipeline.

Target Applications: Builds specialized high-performance processors to power Tesla’s Optimus humanoid robots and Cybercabs, as well as high-power compute requirements for space-based data centers.

Goal: Designed to bridge the massive gap between current global semiconductor manufacturing output and the multi-terawatt AI compute demands projected by Musk's companies.







Posted by ronricks
Member since Mar 2021
13086 posts
Posted on 8/7/26 at 8:09 am to
Factories/assembly plants don't just sprout out of the ground. How many years is this going to take?
Posted by notsince98
KC, MO
Member since Oct 2012
22298 posts
Posted on 8/7/26 at 8:12 am to
this lady seems to be the most intelligent person covering the semiconductor world. If you can get past the thick accent, this is about the most educational video you can find on terafab

This post was edited on 8/7/26 at 8:13 am
Posted by Zgeo
Baja Oklahoma
Member since Jul 2021
4071 posts
Posted on 8/7/26 at 8:12 am to
Seems at odds with his statement that he just uses NVIDIA chips….


LINK
Posted by notsince98
KC, MO
Member since Oct 2012
22298 posts
Posted on 8/7/26 at 8:15 am to
quote:

Seems at odds with his statement that he just uses NVIDIA chips….


I think that is specifically about AI servers. The terafab chips will be used in Tesla, SpaceX, etc. They will be producing their own terrestrial chips for products and their own space quality chips for off-earth equipment. The space grade chips use much older fabrication technology than normal chips due to having to be radiation hardened and nobody can keep up with SpaceX's demand. Plus they see value in producing space grade chips for other consumer like Amazon's space venture.
Posted by jmarto1
Houma, LA/ Las Vegas, NV
Member since Mar 2008
39155 posts
Posted on 8/7/26 at 8:18 am to
Moving this to the US has always been the plan. The gulf coast will benefit due to laxer environmental laws
Posted by stout
Porte du Lafitte
Member since Sep 2006
184359 posts
Posted on 8/7/26 at 8:18 am to
As of now, I dont think anyone can come close to doing what Nvidia does so that isn't a concern.

I wish we could get some relief for RAM, though. Prices are insane. Need a large stateside manufacturing facility for it.
Posted by slackster
Houston
Member since Mar 2009
91871 posts
Posted on 8/7/26 at 8:18 am to
quote:

Will this be the catalyst for us to tell China they can have it?


No. We need more fabs outside of Asia but this will not allow us to just give up Taiwan’s production.
Posted by stout
Porte du Lafitte
Member since Sep 2006
184359 posts
Posted on 8/7/26 at 8:21 am to
quote:

but this will not allow us to just give up Taiwan’s production.



We really need to divest ourselves as much as possible from overseas chip manufacturing.

If there was ever a war, imagine losing it because we couldn't get chips to build missiles.
Posted by slackster
Houston
Member since Mar 2009
91871 posts
Posted on 8/7/26 at 8:23 am to
Not sure anyone would really disagree.
Posted by tiggerthetooth
Big Momma's House
Member since Oct 2010
64580 posts
Posted on 8/7/26 at 8:25 am to
quote:

Bye-bye Taiwan?


No because we've been making chips so long in Taiwan that its going to take a long time for American workers to come up to speed.

You have to remember that outsourcing does more damage than just take jobs, it also eradicates the entire knowledge base from the American population and gives it to foreigners.

Eventually we become dependent on foreigners and the costs become too high to ever bring any of it back.

The only reason chips are coming to the US now is because weve made it a national security issue (which it is) with respect to a likely Chinese invasion of Taiwan.
Posted by j1897
Member since Nov 2011
4890 posts
Posted on 8/7/26 at 8:25 am to
quote:

Builds specialized high-performance processors to power Tesla’s Optimus humanoid robots and Cybercabs


So we're building a factory to make chips for things that don't exist.


Yay


Ya'll so freaking gullible. TSMC will continue to make chips for companies that actually make things.
Posted by jp4lsu
Member since Sep 2016
7115 posts
Posted on 8/7/26 at 8:26 am to
I agree stout. We need to be able to do that here. It was insane to let all of that go overseas.
On that note I don't agree with letting China have Taiwan. That would be a huge get for China's strength and capability in tech, manufacturing, chips. I think we give Taiwan what they need to defend themselves.
Posted by Fun Bunch
New Orleans
Member since May 2008
131566 posts
Posted on 8/7/26 at 8:27 am to
quote:

Will this be the catalyst for us to tell China they can have it?



Why the hell would we want that
Posted by Giantkiller
the internet.
Member since Sep 2007
25750 posts
Posted on 8/7/26 at 8:29 am to
This is not new news. Elon decided awhile back he's tired of being dependent on foreign chip manufacturers. There is literally nobody else on earth that could do something like this.
Posted by stout
Porte du Lafitte
Member since Sep 2006
184359 posts
Posted on 8/7/26 at 8:32 am to
quote:

So we're building a factory to make chips for things that don't exist.



Both of those things exist. Cybercab has already soft-launched in some areas. They are all over Austin IIRC and Tesla has robot prototypes functioning
Posted by j1897
Member since Nov 2011
4890 posts
Posted on 8/7/26 at 8:35 am to
quote:

robot prototypes functioning



HAHAHAHAHAHAHAAH


HAHAAHAHAHAHHAHA


HAHAHAHAHAHAHAHA





Bro stop slurping Elon's balls, none of this stuff works as intended.
Posted by FATBOY TIGER
Valhalla
Member since Jan 2016
13756 posts
Posted on 8/7/26 at 8:35 am to
How many AMERICANS will it employ, better yet, how many TEXANS?
Posted by trinidadtiger
Member since Jun 2017
20667 posts
Posted on 8/7/26 at 8:36 am to
Guys guys, have you forgotten the CHIPS act. Pelosi shoving that through and days later hopping on a jet and heading to Taiwan causing an international uproar. She took her son in tow, hmmm.

A short time later TSMC announced two plants in the states.

Remember CHIPS was to bring computer chip manufacturing back to the US, no one said it had to be American companies.

Here is what Tuberville said about the CHIPS act:

quote:

the CHIPS Act was intended to move the semiconductor manufacturing industry from China to America. Unfortunately, the final version of the CHIPS Act includes so much red tape, including DEI requirements and “environmental justice” initiatives, that companies are experiencing significant delays in the implementation of the law and in accessing its related funding opportunities.


Tubs tried to get through a CHIPS improvement act....but of course it failed in committee.
Posted by stout
Porte du Lafitte
Member since Sep 2006
184359 posts
Posted on 8/7/26 at 8:37 am to
quote:

none of this stuff works as intended.



None of it, huh?

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