SpaceX is planning to invest $55 billion to build the Terafab Chip Factory in Texas

Bloomberg reported that Elon Musk’s SpaceX is proposing a $55 billion investment in a new semiconductor production facility in Texas to advance its ambitious “Terafab” project, per monitoring from Singularity Beat (via Telegram @OneMillion_AI). A public notice on the Grimes County website reveals SpaceX plans to build a “next-generation vertically integrated semiconductor manufacturing and advanced computing facility” locally. Total capital investment could climb to $119 billion if all subsequent project phases are completed. Musk first unveiled the “Terafab” concept in March, aiming to produce chips for his robotics, space, and artificial intelligence initiatives. The SpaceX-Tesla joint venture is critical, he said, because the semiconductor industry is growing too slowly to meet chip demand from his projects and the broader tech sector. “Either we build Terafab, or we won’t have chips—and we need chips, so we’re building it,” he stated.