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LISTEN: Musk Plans $119B Terafab in Texas to Build Chips for ‘Galactic Civilization’

IEN Magazine Published May 9, 2026 Added 2d ago 1:42 Open on YouTube ↗

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SpaceX could invest as much as $119 billion to build its Terafab, a proposed semiconductor manufacturing and computing fabrication facility in Texas, according to local documents (https://grimescountytexas.gov/vertical/sites/%7B958238D0-27E6-4F6C-919E-F1D98542C5FD%7D/uploads/SpaceX_-_Grimes_County_-_30_Day_Notice_of_Tax_Abatement_(proposed_for_posting_by_May_4_for_June_3_meeting).pdf) tied to a tax abatement request. The Commissioners Court of Grimes County will hold a public hearing on June 3 to consider the deal.

The notice states that SpaceX would locate the multi-phase, vertically integrated Terafab at the Gibbons Creek Reservoir and surrounding areas between Austin and Houston. The project’s initial phases could involve up to $55 billion in investment, with total spending potentially reaching $119 billion if additional phases move forward.

The project represents a collaboration between SpaceX, Tesla and xAI, all companies in which Elon Musk serves as CEO. According to a socia

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Kind: captions Language: en SpaceX could invest [clears throat] as much as $119 billion to build its Terraab, a proposed semiconductor manufacturing and computing fabrication facility in Texas, according to local documents tied to a tax abatement request. The commissioner's court of Grimes County will hold a public hearing on June 3rd to discuss the deal. The notice states that SpaceX would locate the multi-phase vertically integrated terraab at the Gibbons Creek Reservoir and surrounding areas between Austin and Houston. The project's initial phases could involve up to $55 billion in investment with total spending potentially reaching $119 billion if additional phases move forward. The project represents a collaboration between SpaceX, Tesla, and XAI, all companies in which Elon Musk serves as CEO. According to a social media post shared by Tesla, the Terapab would manufacture 1 terowatt of chip output per year, which the company claimed would exceed the combined output of all global chip makers. Neither the companies nor local officials announced a time frame. SpaceX revealed Terapab in March and described it as quote the next step towards becoming a galactic civilization. The company said the plan would make chips for Tesla's electric vehicles and Optimus humanoid robots as well as SpaceX spacecraft. Tesla designed the bipeedal autonomous Optimus robot to perform dangerous, repetitive, and boring tasks. According to CBS News, Musk said the automaker would begin selling the robot in 2027. As for space travel, the Terapab aligns with SpaceX's broader plans involving solarp powered AI satellites and future space operations. I'm Nolan Bilestein. This is Manufacturing Now. [music]

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