Elon Musk's SpaceX is set to invest up to $119 billion in the Terafab chip plant located in Grimes County, Texas, aiming to rival Taiwan Semiconductor Manufacturing Company (TSMC). The initial phase of the project will cost $55 billion, significantly higher than the $20 billion estimate Musk proposed earlier this year. This ambitious venture is framed as essential for enhancing SpaceX's capabilities in artificial intelligence, robotics, and space technologies, reducing dependency on Nvidia Corporation for chip production. Analysts from Bernstein suggest that Musk's broader vision could require up to $5 trillion and involve constructing 358 individual chip fabrication plants. TSMC's CEO, C.C. Wei, has indicated that new chip facilities take considerable time to build and ramp up, stating, “there are no shortcuts.” As SpaceX prepares for what may be the largest IPO in history, the Terafab project is expected to consume a significant portion of the IPO proceeds, potentially impacting other ventures like Starship and Starlink. A public hearing regarding the project will be held on June 3.