SpaceX Plans a $119 Billion Chip Factory in Texas — the Largest in the World

SpaceX is seeking a tax abatement from Grimes County, Texas, to build what could become the largest and most advanced semiconductor manufacturing facility ever constructed.

According to a public hearing notice, Grimes County Commissioners will meet on June 3, 2026 to consider a property tax abatement agreement with Space Exploration Technologies Corp. The proposed facility would be located at the Gibbons Creek Reservoir area and designated as SpaceX Reinvestment Zone No. 1.

The project is described as a multi-phase, vertically integrated semiconductor manufacturing and advanced computing fabrication facility. Initial phases carry an estimated price tag of $55 billion, with total investment potentially reaching $119 billion if all phases are completed.

Elon Musk confirmed the news on X, writing that it is “one of several locations under consideration for what will be the largest and most advanced chip fabrication facility in the world.”

The proposed Grimes County facility would mark a significant expansion of the SpaceX footprint in Texas, joining the Starbase launch site in Brownsville and the engine testing grounds in McGregor. By situating the plant near the Gibbons Creek Reservoir, the project gains access to the significant water and power infrastructure essential for large-scale semiconductor fabrication. If the commissioners approve the tax abatement, the project could break ground as early as late 2026, creating thousands of high-tech jobs and establishing a new anchor for the burgeoning Texas technology corridor.

The Commissioners Court will hold a public hearing at 9:00am on June 3 at the Grimes County Justice & Business Center in Anderson, Texas, where residents can weigh in before a vote is taken.