SpaceX to Invest $16.8 Billion in First Phase of Terafab Chip Plant in Grimes County, Texas

Texas Governor Greg Abbott announced on August 6 that SpaceX will build Terafab, a vertically integrated semiconductor fabrication plant, in Grimes County, Texas. The first phase represents a capital investment of more than $16.8 billion and will create 3,000 new jobs.

100 million square feet

The 100-million-square-foot facility will consolidate the production chain under a single roof, combining logic, memory and advanced packaging to meet the company’s future chip needs. Jobs will include engineers, technicians and plant operators.

State support

A $30 million Texas Enterprise Fund grant has been extended to SpaceX, and the facility is a qualified project under the Texas Jobs, Energy, Technology, and Innovation (JETI) program.

Construction underway

Spectrum News reported in September that Terafab broke ground in August near College Station and that the site has already undergone significant clearing. The plant is expected to produce chips for Tesla and SpaceX.

SpaceX Founder and CEO Elon Musk said:

“We’re now embarking on the most epic chip-building effort — combining logic, memory, and advanced packaging all under one roof — in Grimes County, Texas. The Terafab is bringing cutting-edge manufacturing to America, creating thousands of high-paying jobs in the Lone Star State, and enabling us to produce AI chips at scale for use on Earth and in space.”

Grimes County Judge Joe Fauth III said:

“This is a generational change for Grimes County.”