SpaceX is set to establish a semiconductor manufacturing facility in Grimes County, with an investment exceeding $16.8 billion and the creation of approximately 3,000 jobs. This announcement was made by Governor Greg Abbott and SpaceX CEO Elon Musk earlier this month. The plant, named Terafab, will be located near Iola, east of College Station.
The complex will span 100 million square feet, positioning it among the largest manufacturing sites globally. It will feature a vertically integrated design, consolidating chip design, logic, memory, and advanced packaging under one roof. The chips produced will be utilized for Tesla's Optimus humanoid robots, Cybercab driverless vehicles, and processors for SpaceX's satellite-based data centers.
To support this project, the state has provided a $30 million Texas Enterprise Fund grant and other tax incentives through the Jobs, Energy, Technology and Innovation program. Both Grimes County school districts have endorsed the initiative, with Iola ISD Superintendent Jeff Dyer emphasizing the project's benefits for the district.
While the state and SpaceX have indicated an investment of over $16.8 billion for phase one, a SpaceX filing suggested an initial investment of $55 billion, potentially rising to $119 billion. The details of these figures have not been reconciled. Meanwhile, Texas A&M University is developing a Semiconductor Institute at its RELLIS campus to help build a skilled workforce for the industry.