SpaceX Plans $119B Terafab Chip Mega Campus in Texas
According to reports from Bloomberg, Reuters, and CNBC, SpaceX has disclosed large-scale semiconductor manufacturing ambitions in its IPO-related filings, highlighting a potential “Terafab” project that could reshape internal chip supply chains for advanced computing and aerospace systems.
The documents indicate that SpaceX is planning to invest approximately $55 billion in an initial phase to build a hyperscale semiconductor manufacturing campus in Grimes County, Texas. If all expansion phases are fully executed, total investment could reach as high as $119 billion, positioning the project among the most capital-intensive private semiconductor initiatives globally.
The proposed “Terafab” facility is described as a multi-phase, next-generation, vertically integrated semiconductor manufacturing and advanced computing complex. Located near the Gibbons Creek Reservoir in Texas, the site is expected to integrate logic chip fabrication, memory production, and advanced packaging capabilities. The strategic objective is to establish an in-house semiconductor ecosystem to support SpaceX, xAI, and Tesla, reducing reliance on external foundries while improving supply chain resilience and mitigating geopolitical risks.
On the technology front, the filings suggest that the Terafab project is expected to utilize Intel’s advanced 14A process technology. Intel is also expected to contribute expertise in chip design, manufacturing, and advanced packaging solutions. In parallel, Tesla is reportedly planning a separate $3 billion pilot wafer facility in Austin, Texas, aimed at process validation and early-stage production, while SpaceX would lead high-volume manufacturing operations.
The IPO documents also acknowledge that SpaceX currently lacks long-term supply agreements with most semiconductor vendors, reinforcing its strategic push toward vertical integration in chip development and manufacturing. However, the company notes that the timeline and execution of the Terafab project remain subject to significant uncertainty due to technical and financial complexities.
Beyond semiconductor strategy, the filings also highlight SpaceX’s governance structure, which has drawn attention from investors and regulatory observers. Elon Musk holds approximately 42.5% equity ownership but retains around 83.8% voting control through a dual-class share structure and enhanced voting rights, ensuring continued dominant control post-IPO.
Additionally, the company has implemented governance mechanisms such as mandatory arbitration clauses, restrictions on class-action lawsuits, and higher thresholds for shareholder proposals. These provisions, combined with Texas corporate law reforms, may significantly limit external shareholder influence over management decisions.
Despite governance debates, market interest in SpaceX remains exceptionally strong. Driven by its leadership position in rockets, satellite internet, artificial intelligence infrastructure, and data center technologies, the company’s valuation is estimated between $1.75 trillion and $2 trillion. The IPO could raise as much as $75 billion, potentially making it one of the largest public offerings in history.
