In Brief

Posted:

10:23 AM PDT · May 6, 2026

Image Credits: Alisha Jucevic/Bloomberg / Getty Images

SpaceX, Elon Musk’s space company that also houses his AI company, xAI, is considering spending $55 billion, at least initially, to build a semiconductor factory in Grimes County, Texas, according to a proposal on the county website.

The company estimates it may spend a total of $119 billion on the project, which would be a “multi-phase, next-generation, vertically integrated semiconductor manufacturing and advanced computing fabrication facility,” according to the filing.

Musk has previously outlined plans for the project, dubbed “Terafab,” that will also see Tesla contributing resources.…