SpaceX to Invest $55 Billion in Texas Semiconductor Facility for Terafab Wafer Project

SpaceX plans to build a new semiconductor production facility in Texas with an initial investment of $55 billion to push forward the Terafab wafer plant project. This facility will be a next-gen vertically integrated base for semiconductor manufacturing and advanced computing; if all phases are completed, total investment could hit up to $119 billion.

The Terafab project, proposed by Musk in March, aims to make chips for his robotics, aerospace, and AI initiatives. Musk said the semiconductor industry is growing too slowly to meet demand, so building Terafab is necessary. It will support 1 terawatt of computing power yearly and produce cutting-edge 2nm chips.

SpaceX has reached out to chip equipment makers to ask about prices and delivery times, planning to move the project forward quickly. Grimes County released a notice for a public hearing on June 3, noting the facility will be near Gibbons Creek Reservoir and is a transformative investment in U.S. domestic semiconductor manufacturing.