TNB Tech Minute: SpaceX and Tesla Plan Texas Chip Plant

SpaceX and Tesla are planning a massive semiconductor fabrication plant in Texas, aiming to produce one terawatt of compute per year. That headline development anchors this afternoon's TNB Tech Minute, which also covers a planned pharma mission to orbit on a new SpaceX spacecraft and a cautious outlook from data security firm Datadog after one of its biggest customers pulled back on usage.

SpaceX and Tesla Team Up on a Texas Chip Plant

SpaceX and Tesla intend to build what they are calling the biggest chip manufacturing facility ever constructed, located in Grimes County, Texas. The project, named Terrafab, will span 100 million square feet according to Texas Governor Greg Abbott, who announced the plan today. The initial phase represents a $16.8 billion investment and is expected to employ 3,000 people. The companies said their combined demand for chips will exceed one terawatt a year, and the plant is designed to produce the semiconductors SpaceX needs for its spacecraft. Tesla will also use the facility's output. The move doubles down on SpaceX's operations in Texas as the rocket company seeks to secure its own chip supply chain rather than rely entirely on external manufacturers.

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