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Elon Musk's Terafab chip factory in Texas could cost up to $119 billion, filing shows

CNBC · May 6, 2026, 5:56 PM · Also reported by 4 other sources

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  • Elon Musk's plans for a huge chip manufacturing plant in East Texas will cost at least $55 billion for the first phase, and up to $119 billion if the full buildout comes to fruition.
  • The estimated capital investment amounts were disclosed in a public hearing notice on Wednesday in Grimes County, Texas, home of the prospective facility.

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Elon Musk's plans for a huge chip manufacturing plant in East Texas will cost at least $55 billion for the first phase, and up to $119 billion if the full buildout comes to fruition.

The estimated capital investment amounts were disclosed in a public hearing notice on Wednesday in Grimes County, Texas, home of the prospective facility. The notice said SpaceX, which is controlled by Musk, is seeking a property tax abatement agreement from the county.

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