SpaceX has submitted plans to develop a major semiconductor production complex in Grimes County, Texas, signaling a proposed initial capital outlay of $55 billion, according to a public notice posted on the county website. The company describes the project as a next-generation, vertically integrated semiconductor manufacturing and advanced computing fabrication facility.
Company materials referenced in the notice state the total investment could rise to $119 billion if additional phases of the project are approved and completed. The notice was published ahead of a public hearing scheduled for June 3, and identifies land near the Gibbons Creek Reservoir in Grimes County as the intended site for the facility.
The project aligns with a concept introduced in March by Elon Musk called Terafab, which he described as a joint venture between SpaceX and Tesla Inc. designed to produce chips for robotics, space applications and artificial intelligence workstreams. Musk has characterized the current semiconductor supply chain as moving too slowly to meet the chip needs for his companies and the wider tech sector.
According to the materials, the planned fab would aim to manufacture 2-nanometer chips and, over time, support up to a terawatt of computing capacity each year - a level of demand Musk expects as he expands investments in AI and robotics.
SpaceX has also reached out to key equipment suppliers in the semiconductor industry. Company representatives contacted manufacturers including Applied Materials Inc., Tokyo Electron Ltd. and Lam Research Corp. to request price quotations and delivery timelines for the machinery needed to equip a production line, according to reporting that cited conversations earlier this year.
The public notice and the scheduled Grimes County hearing provide local officials and residents an opportunity to review the proposal and raise questions about the project. The filing situates the facility near Gibbons Creek Reservoir and frames the site as the intended location should the plan receive local approvals.
Summary
SpaceX plans a $55 billion semiconductor and advanced computing fabrication facility in Grimes County, Texas, with the potential to expand capital investment to $119 billion. The plant would target 2-nanometer chips and aim to deliver up to a terawatt of computing capacity per year. The proposal is connected to the Terafab initiative introduced by Elon Musk as a collaboration with Tesla, and SpaceX has solicited equipment quotes from several major chip-equipment suppliers. A public hearing on the proposal was scheduled for June 3.