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SpaceX Announces $55 B Texas Chip Plant, Eyes $119 B Expansion

5/9/2026

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Summary

Story summary

SpaceX filed a public-hearing notice in Grimes County, Texas, announcing a first-phase investment of at least $55 billion for the Terafab chip-manufacturing plant.
Total spending could rise to $119 billion if later phases are built.
SpaceX and Tesla seek tax breaks and have a hearing scheduled for next month.
Intel will design, fabricate and package ultra-high-performance chips for Terafab to support a goal of 1 TW per year of compute.

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Story summary

SpaceX filed a public-hearing notice in Grimes County, Texas, announcing a first-phase investment of at least $55 billion for the Terafab chip-manufacturing plant.
Total spending could rise to $119 billion if later phases are built.
SpaceX and Tesla seek tax breaks and have a hearing scheduled for next month.
Intel will design, fabricate and package ultra-high-performance chips for Terafab to support a goal of 1 TW per year of compute.