SpaceX files plan for $55 billion Terafab chip facility in Texas

Elon Musk's SpaceX has proposed investing $55 billion to build a semiconductor manufacturing facility, called Terafab, in Texas, according to a filing made public on Wednesday.

The project would involve a multi-phase chip fabrication and advanced computing complex designed to boost domestic semiconductor production capacity in the United States.

SpaceX estimates that the total investment could potentially rise to $119 billion if additional phases are completed.

The facility is planned in Grimes County within a newly designated reinvestment zone, where local officials are expected to consider a property tax abatement agreement at a June meeting.

(Reporting by Anhata Rooprai and Akash Sriram in Bengaluru; Editing by Anil D'Silva and Devika Syamnath)

Copyright Reuters or USA Today Network via Reuters Connect.

This story was originally published May 6, 2026 at 6:18 AM.