Elon Musk has unveiled plans for a major investment in advanced chip manufacturing through his companies SpaceX and Tesla, according to a public notice released in Texas.
The project, named Terafab, is expected to begin with an investment of at least 55 billion dollars, with total spending potentially reaching 119 billion dollars if additional phases are completed. The facility will be located in Grimes County in Texas, about 70 miles or 110 kilometers northwest of Houston.
According to the notice of public hearing, Terafab will focus on producing semiconductors designed for artificial intelligence systems, robotics, and high performance computing. The chips are also expected to support data centers operating in space, marking one of the most ambitious technology infrastructure projects announced in recent years.
The description of the project highlights it as a transformative step in expanding domestic semiconductor manufacturing capacity in the United States. Musk has stated that the growing computing needs of Tesla and SpaceX will exceed the current global supply of chips, making the facility necessary for future operations.
The long term vision includes producing chips capable of supporting between 100 and 200 gigawatts of computing power on Earth and potentially up to one terawatt in space based systems.
Local authorities in Grimes County are expected to review the project during a scheduled meeting on June 3, where officials will consider approval of a property tax incentive package to support the development.
If approved, Terafab would represent one of the largest private investments in semiconductor production infrastructure, further expanding Musk led efforts in artificial intelligence, transportation technology, and space computing systems.
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