Governor Greg Abbott announced SpaceX will construct a vertically integrated semiconductor fabrication plant in Grimes County.
Facility details and job creation
The first phase of the Terafab project represents a capital investment of more than $16.8 billion and will create 3,000 new jobs. A Texas Enterprise Fund (TEF) grant of $30 million has been extended to SpaceX. The facility is also a qualified project under the Texas Jobs, Energy, Technology, and Innovation (JETI) program.
“Texas is where big ideas grow even bigger,” said Governor Abbott. “I congratulate SpaceX on this significant expansion of their investment in our great state. The first-of-its-kind Terafab facility will accelerate chip production in Texas at an unprecedented scale, create thousands of good-paying jobs in Grimes County, and expand economic opportunity for generations of Texans across Southeast Texas and beyond.”
Already home to the global headquarters for SpaceX, a significant advanced manufacturing presence, and its Starbase launch facility, Texas was selected by SpaceX for the Terafab project because of the state’s business-friendly climate, skilled and growing workforce, robust infrastructure, and logistical advantages. The 100-million-square-foot facility will consolidate the production chain under a single roof to accelerate semiconductor manufacturing to meet the company’s future chip needs; jobs will include engineers, technicians, and plant operator personnel.
“The foundations for the most exciting future are being built right here in Texas,” said SpaceX Founder & CEO Elon Musk. “In addition to our headquarters in Starbase, Texas, where Starship is being developed and launched, and our Starlink factory in Bastrop, Texas, where our high-speed internet kits are manufactured for millions of Starlink customers all around the world — we’re now embarking on the most epic chip-building effort — combining logic, memory, and advanced packaging all under one roof — in Grimes County, Texas. The Terafab is bringing cutting-edge manufacturing to America, creating thousands of high-paying jobs in the Lone Star State, and enabling us to produce AI chips at scale for use on Earth and in space.”
Insight from local leadership
“This is a generational change for Grimes County,” said Grimes County Judge Joe Fauth III. “When we can connect a company like SpaceX and the Terafab project to develop an industrial site in Grimes County, that makes all the sense in the world.”
“We believe this agreement will strengthen our district, expand opportunities, and better prepare our students for their future,” said Anderson-Shiro Consolidated Independent School District Superintendent Dr. Sarah Borowicz. “There are defining moments in the life of a school district, and this is one of those moments. Our commitment now is to ensure that every opportunity created through this agreement is managed wisely, transparently, and always with students at the center of every decision.”
“The Iola Independent School District Board of Trustees voted to enter into an agreement with TeraFab AI, LLC under the Texas Jobs, Energy, Technology, and Innovation Act,” said Iola ISD Superintendent Jeff Dyer. “This decision was made after much thought and consideration. The Board’s stated priority has always been to do what’s best for Iola ISD. Throughout this process, the Board welcomed public input, regularly communicated with SpaceX’s representatives, and engaged a school finance consultant about the impact of this project. Ultimately, the Board determined that providing the requested tax incentives for this project was in Iola ISD’s best interest. I look forward to this opportunity and am hopeful that Terafab will be an excellent partner with Iola ISD.”
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Regional response
“The Greater Brazos Partnership is grateful for the State's leadership in advancing this proposed investment,” said Greater Brazos Partnership President & CEO Tom Johnson. “The region stands ready to deliver the workforce and infrastructure that projects of this scale require, and we look forward to supporting the state, Grimes County, and our local partners as this opportunity moves forward.”
