TEXAS, United States: Elon Musk’s SpaceX is preparing to invest nearly $120 billion in what Musk claims could become the world’s largest and most advanced AI chip manufacturing facility in the US state of Texas.
The company has filed notice to begin construction of a semiconductor and advanced computing facility near the Gibbons Creek Reservoir in Grimes County, according to documents released ahead of a public hearing scheduled for June 3.
The proposed project would mark the first of Musk’s planned “Terafab” plants aimed at meeting the growing demand for high-performance AI chips across his businesses, including Tesla and xAI.
Writing on X, Musk said: “This is one of several locations under consideration for what will be the largest and most advanced chip fabrication facility in the world.”
Global AI boom
The global AI boom has fuelled soaring demand for advanced semiconductors as technology companies compete to build massive data centres and AI systems.
Musk has repeatedly argued that existing chipmakers are unable to keep pace with the rapidly expanding AI industry. Earlier this year, he said it was essential for SpaceX and Tesla to cooperate on semiconductor development.
A filing released in May described the project as a “transformative investment in domestic semiconductor manufacturing capacity”, with spending potentially reaching $119 billion over several phases.
If completed, the facility could reduce US dependence on foreign chipmakers, including Taiwan Semiconductor Manufacturing Co. and Samsung.
