SpaceX has announced plans to build a semiconductor plant in Grimes County, east of College Station, with an initial investment projected at over $16.8 billion and the creation of 3,000 jobs. The project, named Terafab, was revealed by Governor Greg Abbott and SpaceX CEO Elon Musk.
The facility is designed to cover 100 million square feet, making it one of the largest manufacturing sites globally. It will integrate chip design, logic, memory, and advanced packaging all in one location, which is a departure from the current industry practice of outsourcing these functions.
The chips produced at this plant will be utilized in Tesla's Optimus robots, Cybercab vehicles, and in SpaceX's satellite-based data centers. Abbott remarked that the facility would enhance chip production in Texas significantly. Musk emphasized the project's role in advancing American manufacturing and creating high-paying jobs.
While the state cites an investment of $16.8 billion for phase one, a SpaceX filing from May indicated an initial investment of $55 billion, potentially rising to $119 billion. The discrepancy between these figures has not been clarified by either the state or SpaceX.
Both school districts in Grimes County have endorsed the project, and a training pipeline is being developed at Texas A&M's Semiconductor Institute, set to open in 2028. No construction timeline has been provided yet.
