"Musk to Invest Up to $119 Billion in Terafab Semiconductor Plant"

Elon Musk, Chief Executive Officer (CEO) of Tesla, is reportedly planning to invest up to $119 billion (approximately 172.6333 trillion won) in building a large-scale semiconductor manufacturing facility in Texas, according to Bloomberg and CNBC on May 6 (local time).

On this day, Grimes County in Texas announced that a next-generation vertically integrated semiconductor manufacturing and advanced computing facility may be established in the region. The county stated that the first phase of investment alone will be at least $55 billion, and if additional phases of the project are completed, the total investment could reach as much as $119 billion. A public hearing on the project is scheduled for June 3.

Elon Musk, Chief Executive Officer (CEO) of Tesla. Photo by Reuters Yonhap News

In March, CEO Musk unveiled the "Terafab Project," a plan to produce proprietary artificial intelligence (AI) chips jointly driven by SpaceX and Tesla. Terafab is a massive semiconductor manufacturing base promoted by CEO Musk to produce in-house chips for use in AI, robotics, and space data centers. Chips produced at this facility will be supplied to SpaceX, xAI, and Tesla. To this end, he has formed a partnership with Intel and, according to Bloomberg, has recently contacted Applied Materials, Tokyo Electron, and Lam Research.

SpaceX, Musk's space company currently preparing for an initial public offering (IPO), disclosed in documents submitted to the U.S. Securities and Exchange Commission (SEC) that it plans to produce its own graphics processing units (GPUs) as part of its large-scale capital expenditure plans.

Regarding the announcement by Grimes County, CEO Musk stated on the social networking service X (formerly Twitter), "That is one of several sites being considered for the chip project."

This content was produced with the assistance of AI translation services.