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SpaceX pitches $55 B Texas AI chip plant, hearing June 3

5/7/2026

Summary

SpaceX proposes Texas chipplant

SpaceX has proposed a $55 billion investment to build the Terafab chip plant in Grimes County, Texas.
The project could expand to $119 billion across phases to produce advanced 2-nanometer chips.
SpaceX will partner with Tesla, xAI and Intel to supply chips that generate terawatt-level power for AI servers, vehicles and satellites.
A June 3, 2026 public hearing will let Grimes County commissioners consider a property-tax abatement while SpaceX seeks equipment quotes.

Summary

Residents Criticize County

Residents say county communication is frustrating after the county set a tax-abatement hearing for 9:00 a.m. on June 3, 2026, in Anderson.
Charah Solutions bought the 6,000-acre Terafab plant in 2021, demolished and remediated the former 1982-2018 coal-fired site, and sold parcels for brownfield redevelopment.
Analysts project the full-build cost at $119 billion, a sum that rivals TSMC’s Arizona spend and exceeds the $52.7 billion CHIPS Act allocation for U.S. chips.

History

Historical Context

In 1995 Intel began building Fab 14, expanding its chip capacity. Decades later, on 21 March 2026 Elon Musk announced the Terafab partnership of Intel, Tesla, SpaceX and xAI, targeting a 2-nm AI fab that will start with 100,000 wafer starts per month in Austin and aim for over one terawatt of AI compute annually, echoing the earlier push for domestic manufacturing.

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SpaceX proposes Texas chipplant

SpaceX has proposed a $55 billion investment to build the Terafab chip plant in Grimes County, Texas.
The project could expand to $119 billion across phases to produce advanced 2-nanometer chips.
SpaceX will partner with Tesla, xAI and Intel to supply chips that generate terawatt-level power for AI servers, vehicles and satellites.
A June 3, 2026 public hearing will let Grimes County commissioners consider a property-tax abatement while SpaceX seeks equipment quotes.

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