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27 min ago 2 min read
US space exploration company SpaceX plans to build a $55bn semiconductor manufacturing and advanced computing fabrication facility in Grimes County, Texas.
The Terafab facility will be developed in partnership with automotive and clean energy company Tesla, according to reports, and, subject to approval of additional development phases, could represent an estimated total capital investment of $119bn.
A public notice filed with the Commissioners Court of Grimes County, Texas, stated that the development would represent a “transformative investment in domestic semiconductor manufacturing capacity.”
The same filing said the site would support semiconductor production and development across Elon Musk’s portfolio and reduce reliance on third-party semiconductor suppliers.
News of the Terafab coincides with a push towards increased domestic semiconductor manufacturing, research and development in the US.
Under the Biden administration, the 2022 CHIPS Act was introduced to strengthen US semiconductor manufacturing and increase global competitiveness in the sector.
But in an address to US Congress in early March, freshly installed second-term US President Donald Trump harshly , which authorizes $52.67bn to build semiconductor capacity, calling it “a horrible, horrible thing.”
Despite his criticism of the Act, however, Trump still wants to reshore US semiconductor manufacturing to improve national security and create highly-skilled jobs.
According to a White House statement, the US share of global wafer fabrication declined sharply from 37% in 1990 to less than 10% in 2024. Added to this, today, most semiconductors are fabricated in East Asia due to foreign industrial policies that distort global trade flows.
