Elon Musk’s aerospace company, SpaceX, is planning a major investment of at least $55 billion to establish a semiconductor manufacturing facility in Texas, aimed at producing advanced chips for artificial intelligence, robotics, and space-based data centers.
According to a public notice issued on Wednesday, the proposed facility—named Terafab—will be developed in Grimes County, located about 70 miles northwest of Houston. The project is expected to be a joint effort between SpaceX and Musk’s electric vehicle company, Tesla.
The notice outlines an initial investment of $55 billion, with the potential to expand to a total capital investment of $119 billion if additional development phases are completed. Terafab is described as a significant step toward strengthening domestic semiconductor production capacity in the United States.
Musk, who has not previously operated in the semiconductor manufacturing sector, stated that the initiative is driven by the growing demand for computing power from both Tesla and SpaceX. He noted that their future needs could surpass the capabilities of current global chip suppliers.
The long-term vision for the facility includes producing chips capable of supporting between 100 and 200 gigawatts of computing power on Earth, as well as up to one terawatt of computing capacity in space.
Local authorities are also considering incentives for the project. The Grimes County Commissioners Court is scheduled to meet on June 3 to deliberate on approving a property tax abatement to support the development of the facility.
Elon Musk’s SpaceX Unveils $55 Billion Plan for Texas Semiconductor Facility
