SpaceX has taken another step in its chips plan. The company has filed an application to build a semiconductor manufacturing plant in Texas.
The facility, known as Terafab, will be constructed jointly with Tesla. Both Elon Musk-controlled companies will spend $55 billion initially on the project, but could increase the total investment to $119 billion by the time the last phase is completed.
The proposed site is located in a new reinvestment zone in Grimes County, Texas, according to the county’s published information. Officials will deliberate on property tax incentives in early June.
Musk first mentioned the Terafab project last year. He described it as a crucial investment to support his various endeavors: “We either build the Terafab, or we don’t have the chips, and we need the chips, so we build the Terafab.”
The chips from Terafab will find their way into data centers, humanoid robots,autonomous-driving and space-exploration hardware, etc. Musk estimates that when fully operational, the factory could produce the equivalent of a terawatt of computing power annually.
Reuters reported that SpaceX plans to manufacture its own GPUs. Musk also revealed at the last quarterly earnings call that the chips would be based on Intel’s 14A process. Previously, he claimed that SpaceX’s chips would be “inexpensive and highly efficient” compared to similar products from Nvidia.
SpaceX currently sources chips from companies such as Samsung and Taiwan Semiconductor Manufacturing Co. (TSMC). Terafab will help the company become more vertically integrated and less vulnerable to supply chain disruptions.
SpaceX recently merged with xAI, meaning Musk’s rocket business, Starlink, social media platform, and AI startup are now under an umbrella. The resulting entity is planning an initial public offering (IPO) that would raise its valuation to about $1.75 trillion.
Always get the latest - make Drive Tesla your preferred source on Google
Are you buying a Tesla? If you enjoy our content and we helped in your decision, use our referral link to get three months of Full Self-Driving (FSD).Drive Tesla uses affiliate links, which means we may earn a commission if you make a purchase through them, at no additional cost to you. Thank you for your support.
