The estimated capital investment amounts were disclosed in a public hearing notice<\/a> 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.<\/p>\n Grimes County will hold a public hearing on June 3, to consider the proposed tax breaks.<\/p>\n Musk, who’s also CEO of Tesla<\/a>, is aiming for Terafab to be the “most epic chip-building effort ever – combining logic, memory and advanced packaging under one roof,” according to a post<\/a> on X last month from SpaceX, which now owns artificial intelligence company xAI. He officially launched the project in March.<\/p>\n The chip complex outside Austin would be designed to manufacture chips for SpaceX, xAI and\u00a0Tesla<\/a>, and jointly built by those companies.<\/p>\n In April, Intel<\/a> announced it will be joining the Terafab project to help “design, fabricate, and package ultra-high-performance chips at scale.” It’s the first major outside commitment for the capital-intensive foundry side of Intel’s business, which to date has only manufactured chips for its own products. <\/p>\n During Tesla’s\u00a0first-quarter earnings call<\/a> last month, Musk said Tesla plans to use Intel’s forthcoming 14A process to produce chips at the facility. Intel’s stock popped on the news and had its best month ever<\/a> in April, more than doubling in value. <\/p>\n Intel is positioned to benefit from the ongoing AI boom as manufacturing capacity is getting harder to come by at Taiwan Semiconductor Manufacturing<\/a>, where giants like Nvidia<\/a> and Apple<\/a> have reserved their chipmaking availability for years to come. <\/p>\n Ben Bajarin, a chip analyst at Creative Strategies, said Musk is embarking on a “15-year strategy,” knowing that his companies need to control the supply chain as “it would be very, very hard for them to have any priority at TSMC.”<\/p>\n “You don’t just wake up one day and say, ‘I’m going to be a foundry,'” Bajarin said. “It’s a very mature process with constraints across the board on how these things get made.”<\/p>\n On a Tesla earnings call in January, Musk said key chip suppliers couldn’t possibly produce enough hardware to satisfy the automaker’s needs, and that building a Terafab was “actually also going to be very important to ensure that we are protected against any geopolitical risks.”<\/p>\n Musk said on the more recent earnings call that Tesla was “still working out the details of the Terafab deployment,” and that the company would be building a research fab at its factory in Austin, costing around $3 billion and “capable of maybe a few thousand wafers per month.”<\/p>\n “SpaceX is going to take care of the initial phase of the scaled up Terafab,” Musk said on the call. <\/p>\n SpaceX’s financials have been coming to light ahead of a planned public offering in the coming months. The company filed confidentially<\/a> for an IPO in April, weeks after the merger with xAI valued the combined entity at $1.75 trillion.<\/p>\n Tesla and SpaceX didn’t immediately respond to a request for comment. <\/p>\n WATCH: Nvidia snaps up capacity for a key part of AI chipmaking<\/a><\/p>\n![\"Can](\"https:\/\/www.europesays.com\/ai\/wp-content\/uploads\/2026\/05\/108243968-1766101436309-katie_Naga.jpg\")
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