{"id":281722,"date":"2026-05-06T20:09:10","date_gmt":"2026-05-06T20:09:10","guid":{"rendered":"https:\/\/www.newsbeep.com\/us-tx\/281722\/"},"modified":"2026-05-06T20:09:10","modified_gmt":"2026-05-06T20:09:10","slug":"spacex-files-plans-for-55b-terafab-chip-facility-in-southeast-texas","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us-tx\/281722\/","title":{"rendered":"SpaceX Files Plans For $55B Terafab Chip Facility In Southeast Texas"},"content":{"rendered":"

Elon Musk\u2019s SpaceX is proposing to invest an initial $55B to build the first hub of its highly anticipated chipmaking project a little over an hour northwest of Houston.<\/p>\n

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SpaceX<\/a> submitted a public filing to construct a semiconductor manufacturing facility in Grimes County, Texas,\u00a0Reuters reported<\/a>\u00a0Wednesday. It’s the latest step forward for Musk\u2019s new multibillion-dollar project, dubbed Terafab, which seeks to produce more than one terawatt of computing power per year for use on Earth and in future space travel.\u00a0<\/p>\n

The Grimes County Commissioners Court will convene on June 3 to consider a property tax abatement for SpaceX\u2019s proposal, according to a\u00a0public notice<\/a>. The notice doesn\u2019t mention Terafab by name but describes the planned project as a \u201cmulti-phase, next-generation, vertically integrated semiconductor manufacturing and advanced computing fabrication facility.\u201d<\/p>\n

The notice also says SpaceX\u2019s estimated total investment could reach $119B if the project expands into additional phases.<\/p>\n

A spokesperson for SpaceX didn\u2019t immediately respond to a request for comment.<\/p>\n

Terafab, announced last month, is a joint venture between Tesla<\/a>, SpaceX and xAI<\/a> that aims to produce artificial intelligence<\/a> chips at scale and reduce reliance on external chip suppliers such as Samsung<\/a> and TSMC<\/a>.\u00a0It\u2019s part of Musk\u2019s\u00a0broader pivot<\/a>\u00a0toward establishing an integrated AI ecosystem as his companies boost spending on data centers and related infrastructure.<\/p>\n

The current worldwide output of AI chip plants is about 20 gigawatts per year, which makes up only about 2% of what his project needs, Musk said in a video posted on X last month.\u00a0<\/p>\n

\u201cWe need to build the Terafab or we don\u2019t have the chips. And we need the chips,\u201d he said.\u00a0\u00a0<\/p>\n

Musk had initially said last month that he\u00a0selected Austin<\/a>\u00a0for the first Terafab facility but did not\u00a0name a specific location at that time.\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"Elon Musk\u2019s SpaceX is proposing to invest an initial $55B to build the first hub of its highly…\n","protected":false},"author":2,"featured_media":281723,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[4267,132,134,133,8892,44250,2223],"class_list":["post-281722","post","type-post","status-publish","format-standard","has-post-thumbnail","category-austin","tag-ai","tag-austin","tag-austin-headlines","tag-austin-news","tag-elon-musk","tag-semiconductors","tag-spacex"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us-tx\/wp-json\/wp\/v2\/posts\/281722","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us-tx\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us-tx\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-tx\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-tx\/wp-json\/wp\/v2\/comments?post=281722"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us-tx\/wp-json\/wp\/v2\/posts\/281722\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-tx\/wp-json\/wp\/v2\/media\/281723"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us-tx\/wp-json\/wp\/v2\/media?parent=281722"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-tx\/wp-json\/wp\/v2\/categories?post=281722"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-tx\/wp-json\/wp\/v2\/tags?post=281722"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}