SpaceX will build the Terafab semiconductor plant in Grimes County on a state grant and two school district agreements
Governor Greg Abbott announced on August 6th, 2026 that SpaceX will construct a vertically integrated semiconductor fabrication plant in Grimes County. A Texas Enterprise Fund grant of $30 million has been extended to the company. The project is also qualified under the state's Jobs Energy Technology and Innovation program. The release states a first phase of more than $16.8 billion in capital investment and 3,000 new jobs. The company's own statement in the release says the plant will produce AI chips at scale. Two school districts have agreements of their own. The Iola board voted to enter one and the Anderson-Shiro superintendent describes another.
How to take part
The state grant and the school district agreements are already made. A resident who wants to follow what happens next goes to the Grimes County Commissioners Court. The Iola and Anderson-Shiro school boards hold the local agreements. All three meet in public. The Texas Enterprise Fund is administered by the Governor's economic development office.
Where
1 county. In Grimes, which is in no metropolitan or micropolitan area.
Dates
| Date | What | Note |
|---|---|---|
| 2026-08-06 | decided | Governor announced the grant and the qualified project |
The evidence
Every fact above rests on one of these. The words are the source's own.
Governor Greg Abbott today announced SpaceX will construct a vertically integrated semiconductor fabrication plant in Grimes County.Office of the Texas Governor, Governor Abbott Announces SpaceX Expansion In Grimes County Primary source, official
The first phase of the Terafab project represents a capital investment of more than $16.8 billion and will create 3,000 new jobs.Office of the Texas Governor, Governor Abbott Announces SpaceX Expansion In Grimes County Primary source, official
A Texas Enterprise Fund (TEF) grant of $30 million has been extended to SpaceX.Office of the Texas Governor, Governor Abbott Announces SpaceX Expansion In Grimes County Primary source, official
The facility is also a qualified project under the Texas Jobs, Energy, Technology, and Innovation (JETI) program.Office of the Texas Governor, Governor Abbott Announces SpaceX Expansion In Grimes County Primary source, official
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.Office of the Texas Governor, statement of SpaceX Founder and CEO Elon Musk in the release Primary source, official
The Iola Independent School District Board of Trustees voted to enter into an agreement with TeraFab AI, LLC under the Texas Jobs, Energy, Technology, and Innovation Act,Office of the Texas Governor, statement of Iola ISD Superintendent Jeff Dyer in the release Primary source, official
The 100-million-square-foot facility will consolidate the production chain under a single roof to accelerate semiconductor manufacturing to meet the company's future chip needsOffice of the Texas Governor, Governor Abbott Announces SpaceX Expansion In Grimes County Primary source, official