# Elon Musk's plans for a huge chip manufacturing plant in East Texas will cost at least $55 billion for the first phase, and up to $119 billion if the full buildout comes to fruition.

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

## Key points

- Elon Musk's Terafab chip plant in Texas may cost up to $119 billion if fully built.
- SpaceX, Tesla, and xAI will jointly use and build the Terafab facility outside Austin.
- Intel will join the Terafab project, its first major external foundry partnership.
- The plant aims to lessen dependence on TSMC, amid tight chip supply for Nvidia and Apple.
- SpaceX is seeking significant property tax abatements from Grimes County for the project.

**Companies:** Tesla, SpaceX, Intel
**Countries:** United States

[Read the full story on CNBC](https://www.cnbc.com/2026/05/06/elon-musks-spacex-chip-fab-in-texas-to-cost-up-to-119-billion.html)

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