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FINWIRES

SpaceX Estimates $55 Billion Initial Investment for Chip Facility in Texas

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-- Tesla's (TSLA) joint project with SpaceX, a semiconductor manufacturing facility to be built in Texas, has an estimated total capital investment of $55 billion, according to a public notice on Wednesday.

SpaceX forecasts that total investment for the project could reach $119 billion if additional phases are constructed, the notice said.

Texas' Grimes County is one of the possible locations for the "Terafab" facility, Tesla CEO Elon Musk wrote on X.

Local officials of Grimes County will weigh property tax abatement for the facility in a meeting on June 3, according to the notice.

A SpaceX filing highlighted risks around the company's lack of long-term chip supply contracts with direct chip suppliers, Reuters reported.

Price: $393.54, Change: $+4.24, Percent Change: +1.09%

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