SpaceX has submitted a property tax exemption application for a new semiconductor fabrication plant known as Terafab. The company announced the project on May 7. The facility will be located in Grimes County, Texas, near the Gibson's Creek Reservoir. This site sits approximately 90 miles from Austin.
Brownfield site selected for $119 billion total investment
The project involves a massive financial commitment. The initial investment stands at $55 billion. The total projected investment reaches $119 billion upon completion. This initial amount exceeds the total authorized funding of the US CHIPS Act, which is $52.7 billion. The facility will occupy a brownfield site that was formerly a coal power plant.
SpaceX plans to handle mass production at the Texas site. Tesla will operate a small-scale research and development pilot line in Austin. The fab aims to produce high-end chips for Starlink, Tesla Full Self-Driving systems, and xAI models. Industry analysts suggest the project will reshape the global high-end chip and AI computing power landscape. The initiative also aims to help SpaceX achieve chip autonomy.
Local authorities have scheduled a hearing for June 3 to review the tax exemption request. SpaceX and Elon Musk have not publicly responded to resident concerns regarding transparency. This lack of communication has left some questions open regarding the project's immediate impact on the community.
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