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Texas Semiconductor Plant to Boost Chip Manufacturing with 3,000 Jobs

SpaceX plans to construct a $16.8 billion semiconductor facility in Grimes County.

Dexter Doyle

August 10, 20261 min read

industrial construction site - illustration, Jake Team LLC
industrial construction site - illustration, Jake Team LLC

SpaceX is set to establish a semiconductor manufacturing plant in Grimes County, a project valued at over $16.8 billion that will create approximately 3,000 jobs. This initiative, known as the Terafab, was announced by Governor Greg Abbott and SpaceX CEO Elon Musk.

The facility will span 100 million square feet, making it one of the largest manufacturing buildings globally. The design allows for chip design, logic, memory, and advanced packaging to be integrated under one roof, differing from the current industry practice of distributing these processes across various suppliers.

The chips produced will be utilized in Tesla's Optimus humanoid robots, Cybercab driverless vehicles, and processors for SpaceX's satellite-based data centers. Governor Abbott emphasized the significance of the project, stating it will enhance chip production in Texas.

A $30 million grant from the Texas Enterprise Fund has been extended to support the project, which also qualifies for the Jobs, Energy, Technology and Innovation program. Both school districts in Grimes County have approved agreements related to the project, with local officials expressing optimism about its impact on the region.

While the state estimates the initial investment at $16.8 billion, a SpaceX filing suggested a potential investment of $55 billion, raising questions about the figures provided. No construction timeline has been disclosed yet.

Sources

https://gov.texas.gov/news/post/governor-abbott-announces-spacex-expansion-in-grimes-county

https://www.kbtx.com/2026/08/06/gov-abbott-confirms-spacex-expansion-grimes-county/

https://www.connectcre.com/stories/spacex-announces-16-8b-terafab-project-near-college-station/

https://www.kbtx.com/2026/07/21/gov-abbott-signals-approval-spacexs-terafab-jeti-tax-agreements/

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Dexter Doyle

Dexter Doyle reports on local business, new openings, and economic development in Princeton.

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