Michael McCaul Discusses SpaceX's $16.8 Billion Terafab Project in Grimes County

Michael McCaul Discusses SpaceX's $16.8 Billion Terafab Project in Grimes County

'Terafab presents an extraordinary opportunity for Grimes County'

Raeylee Barefield
Raeylee Barefield
October 26, 2026

U.S. Rep. Michael McCaul (R) met with Grimes County Judge Joe Fauth III this week to discuss the planned development of SpaceX's Terafab semiconductor manufacturing facility, a project expected to bring billions of dollars in investment and thousands of jobs to the Texas region.

The proposed facility is planned to span more than 100 million square feet in Grimes County, near College Station. Its first phase is expected to represent approximately $16.8 billion in capital investment and create about 3,000 jobs, according to state and company announcements.

Rep. McCaul, a Texas Republican and chairman emeritus of the House Foreign Affairs Committee, said the project could reshape the local economy and strengthen U.S. semiconductor manufacturing. He also expressed support for coordination among local, state, and federal officials as development moved forward.

"Terafab presents an extraordinary opportunity for Grimes County, the state of Texas, and our entire nation," said McCaul, describing the investment as a potential boost to employment and national security.

SpaceX announced in August that it selected Grimes County for Terafab, a planned vertically integrated semiconductor facility designed to bring chip manufacturing, packaging, and testing together. The company says the project will help meet growing demand for advanced chips used in artificial intelligence, robotics, autonomous vehicles, and space-based computing.

The development is also expected to affect communities across the broader Brazos Valley through workforce demand, supplier opportunities, and supporting infrastructure. Local officials have highlighted the region's potential to connect the project with area workers, educational institutions, and businesses.

The project remains a major undertaking, with its full scale and longer-term development dependent on future phases. SpaceX has outlined a potential multistate buildout, while the first phase is currently associated with the $16.8 billion investment estimate and 3,000 projected jobs.

Raeylee Barefield

Raeylee Barefield

Raeylee Barefield is a Legislative Correspondent based in Austin, Texas, specializing in state government and public policy. With one year of reporting under her belt, she covers legislative developments, committee hearings, and policy debates. She has been cited by Texas Politics and Big Energy for her coverage and analysis of legislative and regulatory issues. Her reporting typically focuses on Public policy, Stare government, environmental policy, and energy regulation. To contact her, please reach out at [email protected]

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