Tesla, led by Elon Musk, has announced plans for a massive $119 billion investment in a semiconductor manufacturing facility named "Terafab." This ambitious project aims to create a vertically integrated chip production operation, handling all stages from design to packaging in one location. The facility is intended to support Tesla's vehicles, xAI's AI servers, SpaceX systems, and potential space-based data centers. The initial phase of Terafab is projected to cost $55 billion, with the potential for total investment to reach $119 billion if all phases proceed. The facility is expected to produce 1 terawatt of chips annually, targeting 1 million wafers per month. Grimes County, Texas, is a leading candidate for the site, though other locations are still being considered. A smaller pilot fab at Giga Texas, costing $3 billion, will precede the full-scale project to test its technology and processes. Intel is reportedly being considered as a partner for this venture.