SpaceX is making waves once again, this time seeking a tax abatement from Grimes County, Texas, to build what could potentially be the largest and most advanced semiconductor manufacturing facility ever constructed. The proposal is set to be discussed at a public hearing on June 3, 2026, where Grimes County Commissioners will consider a property tax abatement agreement with Space Exploration Technologies Corp. The facility is planned to be located at the Gibbons Creek Reservoir area and designated as SpaceX Reinvestment Zone No. 1.
Described as a multi-phase, vertically integrated semiconductor manufacturing and advanced computing fabrication facility, the initial phases of the project are estimated to cost around $55 billion. However, the total investment could reach a staggering $119 billion if all phases are completed. Elon Musk himself confirmed the news on X, stating that the facility is one of several locations under consideration for what will be the largest and most advanced chip fabrication facility in the world.
This proposed facility in Grimes County would mark a significant expansion of SpaceX’s presence in Texas, joining the existing Starbase launch site in Brownsville and the engine testing grounds in McGregor. By strategically locating the plant near the Gibbons Creek Reservoir, the project gains access to crucial water and power infrastructure necessary for large-scale semiconductor fabrication. If the tax abatement is approved by the commissioners, groundbreaking could potentially take place as early as late 2026, creating thousands of high-tech jobs and solidifying a new cornerstone for the growing Texas technology corridor.
Residents will have the opportunity to voice their opinions at a public hearing scheduled for 9:00 am on June 3 at the Grimes County Justice & Business Center in Anderson, Texas. This marks an exciting development for both SpaceX and the local community, as the potential for such a groundbreaking facility could have far-reaching implications for the region’s economy and technological advancement. Stay tuned for further updates on this ambitious project by SpaceX.