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SpaceX may spend up to $119B on ‘Terafab’ chip factory in Texas

TechCrunch AI Ram Iyer May 6, 2026
SpaceX may spend up to $119B on ‘Terafab’ chip factory in Texas
AI Summary— plain English for professionals

# SpaceX Plans Massive $119 Billion Chip Factory in Texas SpaceX is considering building an enormous computer chip manufacturing facility in Texas that could cost up to $119 billion. The factory would be designed to produce advanced chips and computing equipment all under one roof, rather than relying on outside suppliers. This move would give SpaceX more control over the specialized chips it needs for rockets and other projects, but represents a major financial bet on becoming a chipmaker.

The project would be a "multi-phase, next-generation, vertically integrated semiconductor manufacturing and advanced computing fabrication facility," according to the proposal.

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