Elon Musk's SpaceX has filed plans for an initial US$55 billion investment to build a semiconductor facility called Terafab in Texas, reports Reuters.

The project, a joint venture with Tesla, aims to boost US chip production and reduce reliance on suppliers such as Samsung and Taiwan Semiconductor Manufacturing Co. Analysts have indicated that the scale of capacity outlined would likely require far greater investment.

SpaceX stated that total investment could rise to $119 billion if additional phases are completed. The facility is planned in Grimes County within a reinvestment zone, where local officials will consider a property tax abatement in June.

The company flagged plans to manufacture its own GPUs as part of substantial capital expenditures outlined in its S-1 registration. The filing noted risks around supply, citing a lack of long-term contracts with direct chip suppliers.

Mr. Musk has been integrating AI efforts across his companies, with SpaceX acquiring his startup xAI earlier this year in a deal focused on space-based data centers. The combined entity was valued at $1.25 trillion.

SpaceX is also targeting a June IPO that could value the company at about $1.75 trillion. Musk stated last month that the Terafab will use Intel's 14A process to produce chips for Tesla's self-driving systems, humanoid robots, and AI data centers.