Highlights
- Musk says the project will supply computing needs for his robotics, space and AI businesses
- A public hearing is scheduled for June 3
- The project comes as SpaceX eyes a potential $1.75 trillion stock market listing
ELON MUSK's SpaceX is preparing to build what the billionaire claims will be the world's largest chip factory, with plans to spend up to $120 billion (£88bn) on a vast semiconductor facility in Texas, the Telegraph reported.
The rocket company has filed a formal notice to begin construction of the plant near the Gibbons Creek Reservoir in Grimes County, ahead of a public hearing set for June 3.
Writing on X, the social media platform he owns, Musk said: "This is one of several locations under consideration for what will be the largest and most advanced chip fabrication facility in the world."
The plant is the first of what Musk called his "Terafab" facilities, large-scale factories designed to meet the surging computing demands of his AI, robotics and space businesses.
A filing made in May described the project as something that "would represent a transformative investment in domestic semiconductor manufacturing capacity."
Musk said in March that SpaceX and Tesla needed to work together on chips because the wider industry was moving too slowly to keep pace with demand. He has said he wants to proceed at "light speed", and equipment suppliers have already been contacted.
The project could eventually support a terawatt of computing power each year — a figure that reflects the enormous scale Musk expects across his companies.
If built as planned, the factory could reduce America's dependence on overseas chipmakers such as South Korea's Samsung and Taiwan's TSMC, which currently dominate global semiconductor supply.
According to reports, Texas has attracted significant chip investment in recent years, helped by lower energy costs, plentiful land and strong political backing for domestic manufacturing.
The announcement comes as SpaceX seeks to raise up to £55bn ahead of a potential stock market listing that could value the company £1.28 trillion — which would dwarf Saudi Aramco's record float in 2019.
Earlier this year, SpaceX also acquired AI firm xAI in a move aimed at developing space-based data centres, and in April filed confidential paperwork with US regulators for a New York listing, according to Bloomberg.
