SpaceX has filed a property tax abatement application for a new semiconductor fabrication facility in rural Texas. The project, known as Terafab, represents a significant expansion of the company’s industrial footprint beyond aerospace. The filing indicates that the initial phase of this massive undertaking is estimated to cost $55 billion.
Initial phase estimated at $55 billion with potential total investment reaching $119 billion
The facility will occupy roughly 6,000 acres at the Gibbons Creek Reservoir site in Grimes County. This location sits approximately 90 miles northeast of Austin. The site was previously a plant property that SpaceX acquired and subsequently sold in parcels to undisclosed buyers. The land parcels were sold to various entities rather than being retained entirely by the company.
Terafab is designed as a multi-phase, next-generation, vertically integrated semiconductor manufacturing and advanced computing fabrication facility. The project aims to utilize Intel's 14A process technology for high-volume chip manufacturing. Elon Musk previously announced the Terafab project in March with a $20 billion estimate. The current filing shows a significant increase in the projected initial investment compared to that earlier announcement.
The total potential investment for the fully expanded facility could reach $119 billion. This higher figure is contingent on all planned expansions being completed. The Grimes County Government, KBTX, and Bernstein provided details regarding the scale and location of the project. The final total investment cost remains uncertain because the $119 billion figure depends on unconfirmed future expansions.
Specific buyers of the land parcels were not disclosed in the filings. The project aims to achieve a goal of 1 terawatt of annual compute output. This target was stated by Elon Musk during earlier discussions of the initiative. The company has not confirmed the final timeline for the completion of the facility.
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