Elon Musk arrives at the federal courthouse during proceedings in the trial over his lawsuit against OpenAI in Oakland, California, on April 30, 2026.

Josh Edelson | Afp | Getty Images

Elon Musk's plans for a huge chip manufacturing plant in East Texas will cost at least $55 billion for the first phase, and up to $119 billion if the full buildout comes to fruition.

The estimated capital investment amounts were disclosed in a public hearing notice on Wednesday in Grimes County, Texas, home of the prospective facility. The notice said SpaceX, which is controlled by Musk, is seeking a property tax abatement agreement from the county.

Grimes County will hold a public hearing on June 3, to consider the proposed tax breaks.

Musk, who's also CEO of Tesla , is aiming for Terafab to be the "most epic chip-building effort ever - combining logic, memory and advanced packaging under one roof," according to a post on X last month from SpaceX, which now owns artificial intelligence company xAI.…