# SpaceX has filed plans to invest $55 billion in a new semiconductor facility in Texas.

*semiconductor · news · 2026-05-06 · TechStartups.com*

## Key points

- SpaceX plans to invest $55 billion in a Texas semiconductor facility called Terafab.
- Terafab aims to manufacture SpaceX's own GPUs, reducing reliance on external chip suppliers.
- The project will use Intel’s 14A process for chip production, according to Elon Musk.
- Terafab will supply chips to Tesla, SpaceX, and xAI, integrating Musk's ecosystem needs.
- SpaceX warned in filings that execution risk for the Terafab project remains high.

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

[Read the full story on TechStartups.com](https://techstartups.com/2026/05/06/spacex-files-55b-terafab-chip-factory-plan-in-texas-as-musk-doubles-down-on-ai-chips/)

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