SpaceX Plans Grimes County, Texas, Terafab Operations

Area Development News Desk

08/11/2026

Rocket and spacecraft systems manufacturer SpaceX plans to establish operations in Grimes County, Texas. The $16.8 billion project is expected to create at least 3,000 jobs.

The investment will include the construction of an approximately 100-million-square-foot Terafab facility that will manufacture, package, and test advanced AI, logic, and memory chips, supporting semiconductor demand for Tesla's Optimus robots and Cybercabs as well as the company’s planned space-based data centers.

“The foundations for the most exciting future are being built right here in Texas,” said Elon Musk, CEO of SpaceX and Tesla. “In addition to our headquarters in Starbase, Texas, where Starship is being developed and launched, and our Starlink factory in Bastrop, Texas, where our high-speed internet kits are manufactured for millions of Starlink customers all around the world, we’re now embarking on the most epic chip-building effort, combining logic, memory, and advanced packaging all under one roof, in Grimes County, Texas. The Terafab is bringing cutting-edge manufacturing to America, creating thousands of high-paying jobs in the Lone Star State, and enabling us to produce AI chips at scale for use on Earth and in space.”

To support the project, a $30 million Texas Enterprise Fund grant has been extended to SpaceX. The project also qualifies under the Texas Jobs, Energy, Technology, and Innovation (JETI) program.

“Texas is where big ideas grow even bigger,” noted Governor Greg Abbott. “I congratulate SpaceX on this significant expansion of their investment in our great state. The first-of-its-kind Terafab facility will accelerate chip production in Texas at an unprecedented scale, create thousands of good-paying jobs in Grimes County, and expand economic opportunity for generations of Texans across Southeast Texas and beyond.”

SpaceX designs, manufactures, and launches rockets and spacecraft and operates the Starlink satellite internet network. The company develops reusable launch systems, spacecraft, satellite technologies, and related infrastructure for commercial, government, and national security customers.

“The Greater Brazos Partnership is grateful for the State's leadership in advancing this proposed investment,” added Greater Brazos Partnership President and CEO Tom Johnson. “The region stands ready to deliver the workforce and infrastructure that projects of this scale require, and we look forward to supporting the state, Grimes County, and our local partners as this opportunity moves forward.”

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