Governor Greg Abbott announced SpaceX will be constructing a vertically integrated semiconductor fabrication plant dubbed the Terafab project in Grimes County.
The first phase of the project represents a “capital investment” of more than $16.8 billion and will reportedly create 3,000 new jobs.
A Texas Enterprise Fund (TEF) grant of $30 million has been extended to SpaceX, which is a performance-based grant administered by the Texas Economic Development & Tourism Office within the Office of the Governor to businesses relocating or expanding projects in Texas in competition with out-ofstate locations. To qualify, projects must create new, good-paying jobs in the community and attract significant new capital investment to the state.
According to a press release from Abbott’s office, Texas was selected by SpaceX for the Terafab project in part because it is already the global headquarters for SpaceX, but also because of it’s “business-friendly climate, skilled and growing workforce, robust infrastructure and logistical advantages.”
The facility is also a qualified project under the Texas Jobs, Energy, Technology and Innovation (JETI) program, which was created by Abbott when he signed House Bill 5 into law following the 88th Regular Legislative Session.
The program is meant to attract large, capital- intensive economic development projects that bring new capital investment and create new jobs while ensuring reporting and transparency. The 100-millionsquare-
foot facility will consolidate the production chain of semiconductors under “a single roof” to accelerate manufacturing and meet the company’s future chip needs, simultaneously creating jobs for engineers, technicians and plant operator personnel.
“The foundations for the most exciting future are being built right here in Texas,” said SpaceX founder and CEO Elon Musk. “In addition to our headquarters in Starbase, where Starship is being developed and launched, and our Starlink factory in Bastrop, where our high-speed internet kits are manufacture 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.
“The Terafab is brining cutting-edge manufacturing to America, creating thousands of high-paying jobs in the Lone Star State, and enabling us to product AI chips at scale for use on Earth and in space.”
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