# Elon Musk’s SpaceX estimated a chip factory it plans to build along with Tesla Inc. will cost at least $55 billion.

*semiconductor · news · 2026-05-06 · Bloomberg*

## Key points

- SpaceX and Tesla plan to build a chip factory with a minimum cost of $55 billion.
- The chip factory may be located in Grimes County, Texas, as per a public notice.
- Total investment in the factory could reach $119 billion with additional project phases.
- This investment may exceed the amount SpaceX plans to raise from its record IPO.

Elon Musk ’s SpaceX estimated a chip factory it plans to build along with Tesla Inc. will cost at least $55 billion, with total investment potentially exceeding the amount the rocket maker aims to raise from a record initial public offering. The “next-generation, vertically integrated semiconductor manufacturing and advanced computing fabrication facility” may be located in Grimes County, Texas, according to a public notice. The estimated total capital investment could rise to $119 billion if additional phases of the project are completed.

**Companies:** SpaceX, Tesla Inc.
**Countries:** United States

[Read the full story on Bloomberg](https://www.bloomberg.com/news/articles/2026-05-06/spacex-proposes-55-billion-to-begin-terafab-project-in-texas)

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