Musk Plans $120 Billion Chip Megafactory in Texas

A colossal $120 billion investment (equivalent to £88 billion) is being planned by Elon Musk’s SpaceX to construct what the billionaire describes as the world’s largest and most advanced facility for artificial intelligence chips. This move directly challenges the dominance of Asia’s semiconductor giants.

The company has submitted a formal application to begin building advanced computing and semiconductor facilities in the U.S. state of Texas, as reported by the British newspaper *The Daily Telegraph*. The project marks the first phase of a “Terafab” initiative that Musk has been closely monitoring, which he insists is critical to meeting the immense computational demands of his ventures in robotics, space exploration, and artificial intelligence.

Massive Investment and Strategic Location

In a post on his social media platform X, Musk stated, “This site is one of several under consideration for what will be the largest and most advanced chip manufacturing facility in the world.” The newspaper detailed that the investment could reach $119 billion across multiple phases, with the location set for Grimes County, Texas. The project aims to support a “terawatt” of computing power annually.

Musk is pushing for development at “the speed of light,” having already contacted equipment suppliers ahead of a public hearing scheduled for June 3. The overarching goal is to drastically reduce the United States’ reliance on foreign companies such as South Korea’s Samsung and Taiwan’s TSMC.