TLDRTerafab Texas is a $16.8 billion chip factory being built by SpaceX and Tesla in Grimes County, Texas.The site covers about 100 million square feet, more than five times the size of the world’s current largest building.The first phase of the project is expected to create 3,000 jobs.The factory will combine chip logic, memory, and advanced packaging in one location.SpaceX has filed for local tax breaks, and Texas Governor Greg Abbott has confirmed state support for the project.Elon Musk has announced a new chip factory in Texas called Terafab. The project is being built by SpaceX and Tesla.The factory is expected to cost $16.8 billion. Construction is already underway in Grimes County, Texas.Terafab will cover about 100 million square feet. That makes it more than five times larger than the world’s current largest building.The plant will combine several stages of chip production in one place. Logic, memory, and advanced packaging will all happen under one roof.This setup is different from most chip factories. Many companies split fabrication, packaging, and testing across separate plants in different locations.A Record-Breaking BuildingThe New Century Global Center in Chengdu currently holds the record for the largest building on Earth. It measures around 18.9 million square feet.Terafab Texas is planned to be far bigger than that. Musk said the building would be the largest and most valuable on the planet.He also described the building as visually striking. Musk has made similar claims about other projects in the past.The first phase of Terafab is expected to create 3,000 jobs. More jobs could follow as later phases of the project move forward.Musk said the goal is to produce AI chips at scale. He said the chips would be used both on Earth and in space.Public Money and Political SupportSpaceX has filed eight tax incentive applications with local school districts. The company is asking to freeze certain property taxes near 48 percent of appraised value for ten years per phase.SpaceX also wants the state of Texas to cover the difference through the Texas JETI program. In a filing, the company said the project’s return would fall below its minimum threshold without the tax break.The filing named Arizona as a competing location. It said the project could move there if Texas does not offer a similar deal.Texas Governor Greg Abbott confirmed the scale of the investment. He said the first phase represents a capital investment of more than $16.8 billion and will create 3,000 new jobs.Abbott added that Texas is a place where big ideas grow bigger. Neither SpaceX nor the governor’s office has answered requests for further comment.No construction start date has been confirmed yet. Terafab Texas remains one of the largest single building projects announced anywhere in the world this year.The post SpaceX and Tesla Break Ground on Terafab Chip Factory in Grimes County appeared first on Blockonomi.