On October 7, Elon Musk said his companies would build and operate Terafab, a proposed semiconductor campus in Grimes County, Texas. A county notice estimates a potential $119 billion for the full buildout if additional phases are constructed; Texas separately announced more than $16.8 billion for Phase 1.
NeoTeo previously covered reported preliminary discussions with TSMC. Musk’s October 7 statement describes his companies’ intended role in building and running the fab.
The reported plan spans four construction windows
The proposed schedule runs from 2026 through 2036. Phase 1 is projected for 2026–28, with commercial operations projected for 2028. The later phases are contingent on separate decisions after each preceding phase. The plan describes each phase as independently capable of manufacturing semiconductors.
| Phase | Projected period | Plan status |
| 1 | 2026–28 | First phase; Texas announced more than $16.8 billion in investment. |
| 2 | 2029–31 | Potential expansion; proceeding requires a separate decision after Phase 1. |
| 3 | 2032–34 | Potential expansion; proceeding requires a separate decision after Phase 2. |
| 4 | 2035–36 | Potential expansion; proceeding requires a separate decision after Phase 3. |
The $119 billion estimate in the county notice applies if additional phases are built. It is distinct from the state’s announcement of more than $16.8 billion for Phase 1. Texas also announced 3,000 planned jobs and a $30 million Texas Enterprise Fund grant. The planned facility covers 100 million square feet.
The proposed campus combines chipmaking and supporting systems
Terafab is planned as an integrated semiconductor and advanced-computing campus. Its proposed production chain includes chip design, photomask generation, wafer fabrication, advanced packaging and system-level integration. Photomasks are used to transfer circuit patterns onto silicon wafers; advanced packaging brings chip components together in a finished package.
The project plans also encompass cleanrooms, utilities, onsite power generation, battery storage, cooling, water treatment and wastewater processing. County agreements describe plans for surface water from Gibbons Creek Reservoir, onsite power and wastewater treatment and reuse. These systems are part of the proposed campus, not semiconductor production itself.
SpaceX sued over further project-records disclosure
On July 28, the Texas Attorney General’s Office ruled that most requested records should be released while some attorney-client communications could remain confidential. SpaceX filed suit against Texas Attorney General Ken Paxton and Grimes County on September 8, seeking to block the release of additional project records, including material concerning costs, land acquisition, structural designs and incentive negotiations.
Tesla is recruiting for construction management
Tesla job postings seek construction managers, superintendents and logistics staff for work associated with the project. The roles include coordinating construction scopes, bids, contractor selection, design and field execution. Musk’s stated approach is for his companies to build and run the fab.
