SpaceX proposes $119B Texas chip fab
spacex proposed building a $119b semiconductor factory in grimes county, texas. the 'terafab' project aims to produce 1 terawatt of chips annually for xai, tesla bots, and space-based data centers. elon musk stated current manufacturing is insufficient for ai compute needs.
SpaceX filed a proposal with Grimes County, Texas, detailing plans for a 'multi-phase' semiconductor manufacturing facility named 'Terafab'. The project requires an initial investment of $55 billion, with a total estimated cost of $119 billion. Elon Musk indicated the facility aims to manufacture chips providing 1 Terawatt of power annually to supply xAI’s Grok models, Tesla’s robotics division, and a proposed orbital data center. Intel is collaborating on the effort, though Musk noted Texas is one of several locations under consideration.