# An application posted to the Grimes County website lays out an initial $55 billion build.

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

## Key points

- The initial Terafab build cost has jumped to $55 billion, nearly triple Musk's March estimate.
- The Grimes County site for Terafab is the former Gibbons Creek coal plant, demolished in 2021.
- SpaceX's anticipated $75 billion IPO raise could be mostly consumed by the first Terafab phase.
- Morgan Stanley analysts forecast Terafab's initial chip output is unlikely before mid-2028.
- TSMC's CEO stated chip fab construction and ramping require at least three to five years.

**Companies:** SpaceX, TSMC
**Countries:** United States

[Read the full story on Benzinga](https://www.benzinga.com/markets/prediction-markets/26/05/52330014/elon-musk-plans-to-spend-up-to-119-billion-on-chip-plant-to-take-on-tsmc)

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