SpaceX Files Plans for $55B 'Terafab' Semiconductor Facility in Texas — Joint Venture with Tesla Using Intel 14A Process; Total Investment Could Reach $119B

SpaceX filed regulatory and planning documents on May 6, 2026 for a massive $55 billion semiconductor manufacturing complex called 'Terafab' in Grimes County, Texas, in a joint venture with Tesla. The facility is planned to use Intel's advanced 14A chip fabrication process to produce custom chips for Tesla's Full Self-Driving (FSD) system, Tesla Optimus humanoid robots, and xAI data centers — vertically integrating chip manufacturing into Musk's broader industrial empire. Total investment across all planned phases of the Terafab project could reach $119 billion, according to multiple reports. Bloomberg and US News & World Report confirmed the filing, describing it as part of Musk's strategy to secure chip supply chains for his overlapping technology ventures. The Terafab facility adds a semiconductor dimension to SpaceX's recently-disclosed $15 billion Starship development program and its imminent IPO targeting a $1.75 trillion valuation. The announcement comes as SpaceX's public S-1 IPO registration is expected around May 15-22 — meaning prospective investors will encounter the Terafab commitment as a major capital allocation decision in the prospectus.