Tesla and SpaceX Committed $16.8 Billion to One Chip Plant. Tesla's Entire Annual Profit Is $3.8 Billion.
The first phase of Terafab costs more than four times what the electric-car maker earned over the past year.
Overview
Tesla (NASDAQ: TSLA) and SpaceX (NASDAQ: SPCX) said on Aug. 6 that they will spend $16.8 billion on the first phase of Terafab, a semiconductor plant in Grimes County, Texas. Tesla's net income over the past 12 months was about $3.8 billion -- so the two companies' opening commitment alone is more than four times what Tesla currently earns in a year.
Image source: Tesla.
The plan is enormous even by chip-industry standards. Terafab is designed to put logic, memory, packaging, and testing under one roof, across more than 100 million square feet, about an hour northwest of Houston. The companies say the site will draw water from the Gibbons Creek Reservoir rather than local groundwater.
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Source
Originally published at www.fool.com.