# SpaceX is considering building a semiconductor factory in Grimes County, Texas.

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

## Key points

- SpaceX is considering an initial $55 billion investment for a semiconductor factory in Grimes County, Texas.
- Total project spending could reach $119 billion for a multi-phase, vertically integrated semiconductor facility.
- Intel is partnering with SpaceX and Tesla to develop chips for AI servers, satellites, and autonomous vehicles.
- The facility aims to eventually manufacture enough chips to generate 1 Terawatt of power per year.
- Grimes County, Texas is only one of several potential locations being considered for the Terafab factory.

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

[Read the full story on TechCrunch](https://techcrunch.com/2026/05/06/spacex-may-spend-up-to-119-billion-on-terafab-chip-factory-in-texas/)

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