SpaceX has announced plans to construct a semiconductor plant in Grimes County, with an initial investment exceeding $16.8 billion and the potential to create 3,000 jobs. The project, named Terafab, was revealed by Governor Greg Abbott and SpaceX CEO Elon Musk this month.
The facility is designed to span 100 million square feet, positioning it among the largest manufacturing buildings globally. It will integrate chip design, logic, memory, and advanced packaging under one roof, unlike the current industry practice of distributing these functions across various suppliers.
The chips produced at Terafab will be utilized in Tesla's Optimus humanoid robots, Cybercab driverless vehicles, and processors for SpaceX's planned satellite-based data centers. Governor Abbott emphasized the significance of the project for Texas, stating it will enhance chip production at an unprecedented scale. Musk noted that it will bring advanced manufacturing back to the United States and generate numerous high-paying jobs.
The state has committed a $30 million grant from the Texas Enterprise Fund for the project, which also qualifies for tax incentives under the Jobs, Energy, Technology and Innovation program. Local school districts have expressed support, with agreements in place to benefit from the project.
However, there is a discrepancy between the state’s investment figure and SpaceX's earlier filing, which suggested a potential total investment of up to $119 billion.
