SpaceX announced plans to construct a massive semiconductor manufacturing facility in Texas named Terafab. The project requires an initial investment of approximately $55 billion. Public filings indicate total spending could reach $119 billion following future expansion phases.
SpaceX developed the project in partnership with Tesla to produce advanced AI chips and GPUs. The facility aims to reduce reliance on external foundries such as TSMC and Samsung. Production will support Tesla self-driving systems, humanoid robots, and SpaceX space-based computing.
This initiative represents one of the largest single investments in domestic U.S. chip production. The move establishes a vertically integrated technology stack across all Elon Musk-led companies. The announcement highlights increasing global competition for AI computing resources and supply chain control.