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Gov. Greg Abbott announces $16.8 billion SpaceX chip manufacturing plant in Texas

The first phase will create 3,000 jobs and includes a $30 million Texas Enterprise Fund grant, officials said.

  • Nearly 900 residents presented a petition to the County Commissioner Court on Wednesday, demanding stricter oversight for large infrastructure projects receiving public incentives, including the Terafab semiconductor facility.
  • SpaceX and Tesla announced the Terafab project in March, planning a 100-million-square-foot semiconductor facility in Grimes County with an initial $16.8 billion investment to produce AI chips.
  • Residents questioned millions of dollars in tax breaks and the project's transparency during a heavily-attended Wednesday meeting, raising concerns about water usage and potential pollution impacts.
  • Following the meeting, the County Commissioner Court agreed to appoint a review committee, while Texas Gov. Greg Abbott paused new data center construction Monday to audit power grid access.
  • Citizens across the country are challenging rapid AI infrastructure expansion, highlighting friction between corporate industrial goals and local community protections as similar resistance spreads nationwide.
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TESLARATI broke the news on Thursday, August 6, 2026.
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