SpaceX Files Plans for $55 Billion Chipmaking Facility in Texas

The company has filed plans for a $55 billion chipmaking facility in Texas that would focus on semiconductor manufacturing and advanced computing. SpaceX submitted the filing on Wednesday for the project known as Terafab, which the company announced in March.

The facility is intended to produce more than one terawatt of artificial intelligence compute capacity per year. At the time of the announcement, the company cited expected future chip shortages as a reason for the project. The company stated it was grateful to existing chip suppliers such as Samsung and TSMC.

It added that demand from its companies would eventually exceed total global chip output.

Terafab would be built in Grimes County.

Local documents describe it as a multi-phase facility for semiconductor manufacturing and advanced computing. The project would give the company more control over the chips and computing power needed across SpaceX, Tesla, and xAI. Tesla has made autonomous driving and robotics central to its strategy.

SpaceX operates Starlink and other satellite systems. xAI is developing large AI models that require significant computing capacity.

The project comes as advanced chips have become one of the most important resources in the global technology race. AI systems need specialised semiconductors to train models, process data, and run complex software. Demand for those chips has surged as companies build larger AI systems.

Governments in the U.S. and Europe are trying to grow their own semiconductor industries and reduce reliance on supply chains concentrated in East Asia. Terafab would link chipmaking, computing power, artificial intelligence, and space infrastructure.

The project is still at an early stage. Local officials in Texas are expected to discuss proposed incentives for the site at a public hearing in early June. The facility remains subject to approvals, financing, and construction hurdles.