SPACEX, GOV. ABBOTT CONFIRM TERAFAB PROJECT IN GRIMES CO.

  

SpaceX and Governor Greg Abbott have officially announced the company’s plans to build the new Terafab facility in Grimes County.

SpaceX and the governor’s office issued releases today (Thursday) with additional details about the project, labeled a vertically integrated semiconductor fabrication plant, that will be located at the Gibbons Creek Reservoir site. 

Abbott said the first phase of the project will include a capital investment of over $16.8 billion and is projected to create 3,000 new jobs, including engineers, technicians and plant operator personnel.  The 100-million-square-foot facility seeks to boost semiconductor manufacturing in order to meet the company’s future chip needs. 

Abbott called the Terafab facility “first-of-its-kind” and said it will “accelerate chip production in Texas at an unprecedented scale, create thousands of good-paying jobs in Grimes County, and expand economic opportunity for generations of Texans across Southeast Texas and beyond.”

SpaceX Founder and CEO Elon Musk said Terafab will bring “cutting-edge manufacturing to America” and will enable the production of artificial intelligence chips at scale for use on Earth and in space.

SpaceX received a $30 million Texas Enterprise Fund grant, which is a performance-based grant that goes toward business relocation or expansion projects considering Texas and other locations out of state.  The facility also qualifies for state tax incentives under the Texas Jobs, Energy, Technology and Innovation (JETI) program, and the company has reached agreements with Grimes County, Iola ISD and Anderson-Shiro CISD.

The company said it plans to use Gibbons Creek Reservoir water, rather than local groundwater, for industrial operations.  It said it is also looking to build on-site wastewater treatment facilities, commit to water reuse and conservation efforts, comply with all applicable environmental and pollution control laws, and meet and exceed standards for managing hazardous materials, chemicals and industrial byproducts.