SpaceX to Build 'World's Largest Building' Semiconductor Factory in Grimes County, Texas
Governor Greg Abbott of Texas revealed that SpaceX plans to construct a semiconductor factory spanning 100 million square feet in Grimes County, which has been labeled as the "largest building in the world." The Terafab facility will encompass chip fabrication, memory, and advanced packaging to enhance SpaceX’s spacecraft, satellites, and AI technologies. Elon Musk referred to this initiative as an "epic chip-building effort." This development is significantly larger—100 times—than SpaceX's earlier expansion in Bastrop, Texas. Texas will contribute a $30 million grant, and the facility is eligible for state incentives. Concerns have been raised regarding SpaceX's environmental effects and land usage, particularly related to its Starbase operations. Grimes County Judge Joe Fauth III described the project as a "generational change," with local school districts endorsing tax incentives.
Key facts
- SpaceX to build 100-million-square-foot semiconductor factory in Grimes County, Texas.
- The planned Terafab facility will combine chip fabrication, memory, and advanced packaging under one roof.
- Texas Governor Greg Abbott announced the project this month.
- The state is granting a $30 million Texas Enterprise Fund award.
- The project qualifies for incentives through Texas's Jobs, Energy, Technology, and Innovation program.
- The Grimes County plant will be about 100 times the size of SpaceX's planned expansion in Bastrop, Texas.
- The EPA found SpaceX violated the Clean Water Act in 2024 for releasing pollutants in South Texas.
- Starbase was incorporated as a city in 2025 after a vote by SpaceX employees.
Entities
Artists
- Greg Abbott
- Elon Musk
- Joe Fauth III
Institutions
- SpaceX
- Texas Enterprise Fund
- EPA
- NPR
- Starbase
Locations
- Grimes County
- Texas
- Bastrop
- Starbase
- South Texas
- Gulf Coast
- United States