Elon Musk’s plan to build a major chipmaking facility in Texas took clearer shape Wednesday when SpaceX filed plans for a $55 billion facility known as Terafab.
Musk announced the project in March to produce more than one terawatt of AI compute capacity per year. He said demand from his companies would eventually exceed total global chip output.
Terafab would be built in Grimes County, Texas, focusing on semiconductor manufacturing and advanced computing. It would give Musk more control over the chips and computing power needed across SpaceX, Tesla, and xAI.
The project comes as advanced chips have become one of the most important resources in the global technology race. Governments in the US and Europe are trying to grow their own semiconductor industries to reduce reliance on supply chains concentrated in East Asia.
The facility remains subject to approvals, financing, and construction hurdles, with local officials expected to discuss proposed incentives in early June.