SpaceX has filed plans to build a $55 billion semiconductor manufacturing facility in Texas, in a joint project with Tesla. The facility, called Terafab, would be located in Grimes County and is designed to boost domestic chip production capacity.
The project targets a June IPO that could value SpaceX at around $1.75 trillion. Elon Musk has warned of constraints in advanced chip supply, calling computing power the key bottleneck for scaling artificial intelligence systems.
Local officials are expected to consider a property tax abatement agreement at a June meeting. The total investment could potentially rise to $119 billion if additional phases are completed. The plan aligns with broader U.S. efforts to reduce reliance on external suppliers such as Samsung and Taiwan Semiconductor Manufacturing Co. amid geopolitical tensions and supply chain risks.