SpaceX files for a $55bn Texas semiconductor fab, with combined chipmaking investment reaching $119bn

https://media.thenextweb.com/2026/05/Terafab.avif

The Terafab project sits alongside the existing Bastrop packaging operation. Combined, the two facilities could anchor a $119bn Texas chipmaking footprint. SpaceX has not yet disclosed the process technology Terafab will run, or the construction timeline.


SpaceX has filed paperwork for a semiconductor fabrication facility in rural Texas with a planned investment of approximately $55bn. Reuters reported the filing on Wednesday. The project, known internally as Terafab, would sit alongside the company’s existing chip-packaging operations in Bastrop and, on completed timelines, anchor a Texas chipmaking footprint with combined potential investment reaching $119bn.

The distinction between Terafab and Bastrop matters. The Bastrop facility, which began equipment installation in April 2026, is a packaging operation. It takes silicon dies that have been fabricated elsewhere, packages them, and ships them out as finished radio-frequency chips for Starlink user terminals. Terafab is something different: an actual fabrication facility, designed to produce silicon at...

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