Gov. Abbott Announces SpaceX Expansion in Grimes County

AUSTIN, TX — Gov. Greg Abbott announced Thursday that SpaceX will build a vertically integrated semiconductor fabrication plant in Grimes County, representing a capital investment of more than $16.8 billion and creating 3,000 new jobs.

The first phase of the Terafab project will receive a $30 million grant through the Texas Enterprise Fund and has also been designated as a qualified project under the Texas Jobs, Energy, Technology and Innovation, or JETI, program.

“Texas is where big ideas grow even bigger,” Abbott said. “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.”

State officials said Texas was selected because of its business climate, skilled workforce, infrastructure and logistics network. The planned 100-million-square-foot facility will consolidate semiconductor production under one roof to increase chip manufacturing capacity for the company. The project is expected to create engineering, technician and plant operations jobs.

SpaceX founder and CEO Elon Musk said the facility will combine logic, memory and advanced packaging manufacturing to produce artificial intelligence chips for use on Earth and in space.

“The foundations for the most exciting future are being built right here in Texas,” Musk said. “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.”

Grimes County Judge Joe Fauth III called the project “a generational change” for the county.

Officials from Anderson-Shiro Consolidated Independent School District and Iola Independent School District also expressed support for the project, citing future educational and economic opportunities. Iola ISD's board approved an agreement with TeraFab AI LLC under the JETI program after reviewing the project's financial impact.

Greater Brazos Partnership President and CEO Tom Johnson said the region is prepared to provide the workforce and infrastructure needed to support the development.

The Texas Enterprise Fund is a performance-based incentive administered by the Governor's Office to support business relocations and expansions that create jobs and attract significant private investment. The JETI program, created by House Bill 5 during the 88th Texas Legislature, provides incentives for large-scale economic development projects that generate new investment and employment opportunities in Texas.