SpaceX, Elon Musk’s space company, is planning a massive semiconductor project in Texas that could cost as much as $119 billion.
According to documents filed in Grimes County, Texas, the company is initially looking at spending about $55 billion to begin construction. The full project, called “Terafab,” could eventually grow into a multi-stage facility focused on advanced chip production and computing systems.
The factory would not only support SpaceX but also Musk’s other companies, including Tesla and xAI. Reports say Intel is also involved, with the goal of building chips for AI systems, satellites, space-based data centers, Tesla vehicles, and robots.
Musk has described the project as necessary because current chip production is not fast enough to meet the growing demand from his companies. He said the factory would eventually produce chips capable of delivering massive computing power for artificial intelligence and robotics.
He also stated that if the facility is not built, his companies may struggle to secure enough chips for future technologies. However, Musk later clarified on social media that Grimes County is just one possible location and that no final decision has been made.
The project comes as Musk continues to expand xAI’s computing power to support its Grok AI models. He has also pushed plans to build data centers in space, which he says could support future AI needs.
Musk recently combined xAI and SpaceX into a single structure reportedly valued at $1.25 trillion, with plans for a possible public listing in June. If completed, Terafab would become one of the largest and most ambitious semiconductor projects ever attempted.
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