GRIMES COUNTY, Texas — In front of a packed courthouse, Grimes County commissioners voted June 3 to approve the creation of a new tax investment zone and tax abatement, paving the way for Elon Musk’s mammoth bet on Texas semiconductor manufacturing.
The vote gives a green light to SpaceX Reinvestment Zone No. 1, which alleviates property taxes on an expanse of thousands of acres of land around the Gibbons Creek Reservoir area in northwest Grimes County. That area will be the home of Terafab, a joint venture of the Musk-founded companies SpaceX, Tesla Inc., and xAI that would produce hundreds of millions of semiconductor chips.
In a notice for the June 3 public hearing, Grimes County said Musk’s companies had committed to $55 billion of investment for the initial stages of the planned sprawling semiconductor campus. If all phases are built out, the figure could reach a staggering $119 billion.
