SpaceX is set to establish a semiconductor plant in Grimes County, with an initial investment exceeding $16.8 billion and the potential to create 3,000 jobs. This project, named Terafab, was announced by Governor Greg Abbott and SpaceX CEO Elon Musk. The facility will be one of the largest manufacturing buildings globally, covering 100 million square feet.
The state has extended a $30 million grant from the Texas Enterprise Fund to support the project. Additionally, it qualifies for the Jobs, Energy, Technology and Innovation program, which includes school-tax incentives. Both school districts in Grimes County have endorsed the project, with Iola Independent School District approving an agreement with TeraFab AI, LLC.
Iola ISD Superintendent Jeff Dyer stated that the tax incentives are in the district's best interest.
While the state and SpaceX have reported the initial phase investment at over $16.8 billion, a SpaceX filing indicated a proposed investment of $55 billion, potentially rising to $119 billion. The discrepancy in figures may arise from different definitions of project phases.
A Semiconductor Institute is also being developed at Texas A&M's RELLIS campus, aimed at training a workforce for the chip manufacturing sector. No construction timeline for the Terafab facility has been disclosed.
