SpaceX said Thursday it will build a nearly $17 billion computer chip manufacturing plant in Grimes County, Texas, confirming plans to bolster supplies for the space company as well as Tesla.
Both Texas-based firms are led by Elon Musk, who is pursuing a range of futuristic projects tied to artificial intelligence, space-based data centers, robots and self-driving cars.
SpaceX and Tesla estimated that their future plans will require over a terawatt of computing power, or more than the current global chip supply. Most of the world’s chip manufacturing happens overseas, and President Donald Trump and other officials have sought to spur U.S. production given its strategic importance.
The initial phase of the new plant, known as Terafab, will cost an estimated $16.8 billion. SpaceX said potential expansion phases could push the total investment much higher.
