Overview
- SpaceX, in a public notice posted Wednesday on the Grimes County website, proposed a $55 billion first phase for a Terafab site near the Gibbons Creek Reservoir with a June 3 hearing on a property tax abatement.
- The filing says total spending could reach $119 billion across later phases, far above Morgan Stanley’s prior $34 billion to $45 billion estimate.
- Terafab is framed as a SpaceX, Tesla, and xAI effort to make chips for AI and robotics across their products, with Elon Musk naming Intel’s 14A manufacturing process as the planned technology.
- Musk said SpaceX will cover most early costs, and any transactions with Tesla must be cleared by both companies’ boards to address conflicts.
- Key timelines and partners remain unsettled, and industry experience shows advanced chip plants take years to build and ramp before reaching full output.