SpaceX may spend up to $119 billion on ‘Terafab’ chip factory in Texas

SpaceX is weighing a multibillion-dollar semiconductor factory in Texas called Terafab, with an initial $55 billion investment and a possible total cost of $119 billion.

The multi-phase facility would make chips for AI servers, satellites, a future space data center, and Tesla vehicles and robots.

Intel is also involved, and Musk said Texas is only one possible location as xAI continues expanding its computing capacity.

If built, the project could reshape the supply of specialized chips across Musk’s space, AI, and manufacturing businesses.