Elon Musk's SpaceX, in a joint project with Tesla has proposed investing $55 ​billion to build a semiconductor manufacturing facility, called ‌Terafab, in Texas, according to a filing made public on Wednesday.

The billionaire has been seeking to secure in-house access ​to advanced chips, though analysts have said the ​scale of capacity he has outlined would likely ⁠require far greater investment.

SpaceX is targeting a June ​IPO that could value the company at around $1.75 trillion.

The ​project would involve a multi-phase chip fabrication and advanced computing complex designed to boost domestic semiconductor production capacity in the United ​States.

SpaceX estimates that the total investment could potentially ​rise to $119 billion if additional phases are completed.

The facility is planned ‌in ⁠Grimes County within a newly designated reinvestment zone, where local officials are expected to consider a property tax abatement agreement at a June meeting.

Musk has repeatedly ​warned of ​constraints in ⁠advanced chip supply, calling computing power the key bottleneck for scaling artificial intelligence systems.

The ​proposed facility could help reduce reliance on ​external ⁠suppliers such as Samsung and Taiwan Semiconductor Manufacturing Co.

The plan also aligns with a broader U.S. effort to ⁠expand ​domestic semiconductor manufacturing capacity amid ​geopolitical tensions and supply chain risks.

- Reuters