SpaceX is pushing deeper into advanced technology with a massive new proposal that could reshape U.S. semiconductor production. The company, led by Elon Musk, has filed plans to invest $55 billion in a new chip manufacturing facility in Texas, according to a public filing released Wednesday.
The project, named “Terafab,” would be developed as a large-scale semiconductor and advanced computing complex. Designed in multiple phases, the facility aims to significantly boost domestic chip production capacity at a time when the United States is working to strengthen its supply chain independence, News.Az reports, citing Reuters.
SpaceX indicated that the total investment could grow substantially beyond the initial figure. If all planned phases are completed, the cost of the Terafab project could reach as much as $119 billion, making it one of the most ambitious semiconductor investments ever proposed in the country.
The facility is planned for Grimes County, Texas, within a newly designated reinvestment zone. Local officials are expected to review potential incentives for the project, including a property tax abatement agreement, during a meeting scheduled for June.
If approved and fully realized, the Terafab complex could position SpaceX as a major player not only in aerospace and satellite technology, but also in the global semiconductor industry—an area currently dominated by specialized chipmakers and increasingly central to economic and national security strategies.
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