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On June 3-4, 2026 Grimes County commissioners voted 4-1 to designate a reinvestment zone for SpaceX’s proposed Terafab semiconductor and advanced computing complex near the Gibbons Creek Reservoir in rural Texas, formally clearing the procedural step that enables future tax abatement negotiations.
The move comes despite strong local opposition at a packed public hearing, where residents warned of strains on water, power, wildlife and the county’s rural character.
SpaceX and partners have described Terafab as a vertically integrated chip operation to handle design, fabrication, packaging and testing, with initial investment estimates around $55 billion and potential full buildout costs cited up to $119 billion.
County officials have projected thousands of jobs and significant payroll gains; economists say the facility could materially enlarge the local tax base.
The approval arrives days before SpaceX’s planned IPO, which sources have said seeks to raise about $75 billion at a roughly $1.75 trillion valuation, heightening investor scrutiny of the company’s push beyond aerospace into semiconductors and AI-linked infrastructure.

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