SpaceX requests tax exemption to build chip manufacturing plant in Texas

Austin.- SpaceX, owned by Elon Musk, submitted a tax exemption request this Wednesday to build a chip manufacturing plant in Texas.

The facilities, which the company plans will require an initial investment of $55 billion, are part of the ‘Terafab’ project, announced by Musk last month, which seeks to produce chips for SpaceX, xAi, and Tesla, all technology companies owned by Musk. As indicated by a public hearing notification issued today by Grimes County, just outside Houston, where it was announced that the municipality would study a request for a tax exemption agreement from SpaceX. Terafab, the document indicated, is presented as a “transformative investment in semiconductor manufacturing capacity” in the U.S. and will have a final cost of up to $119 billion.

We recommend reading:

The project, in which Musk’s companies will collaborate with the technology company Incel, aims to produce 1 TW/year of computing capacity to drive future advances in artificial intelligence and robotics. Specifically, Terafab will manufacture two types of chips, one for electric vehicles, Optimus humanoid robots, both produced by Tesla, and another for SpaceX’s aerospace projects. As Musk himself indicated on his X platform account in March, his companies are considering “several locations” to build Terafab, a plant that will require “thousands of acres and more than 10GW of energy at full capacity”.