Elon Musk’s plan to build a massive chipmaking facility is advancing with a $55 billion price tag and a proposal for a site about 130 miles east of Austin.
SpaceX is proposing a multiphase semiconductor manufacturing and advanced computing fabrication facility about 20 miles east of College Station, according to a public hearing notice in Grimes County.
On June 3, county commissioners are expected to consider a property tax abatement agreement for the facility, which the notice says has an estimated capital investment of $55 billion for the initial phase, and a total capital investment of $119 billion if additional phases are constructed.
The notice represents the first indication of a possible site for Musk’s plans for SpaceX and Tesla to build the world’s largest chip manufacturing plant. When he first announced the so-called Terafab project in late March, Musk said several locations were under consideration for the 100 million-square-foot facility he envisions.
Austin is expected to host some Terafab-related operations. Musk said Gigafactory Texas will be home to an advanced technology fab focused on chip design and development, though he said the Tesla headquarters site would not be large enough for the manufacturing facility he has proposed.
Meanwhile, Musk isn’t set on building Terafab near Aggieland. On Wednesday, Musk posted on X that the Grimes County location — at the Gibbons Creek Reservoir and surrounding areas — is one of several being considered for the chip facility.