ANDERSON, Texas/NEW YORK, June 3 (Reuters) - SpaceX secured tax incentives on Wednesday for its proposed Terafab chip manufacturing project in Grimes County, Texas, despite fierce opposition from residents who warned the development could strain local resources and transform the rural community.
The project is central to SpaceX's efforts to expand beyond rockets and satellite communications into advanced computing infrastructure and domestic chip production — ambitions that investors view as a major pillar of the company's future growth.
Next week, SpaceX is expected to launch what could become the largest IPO in history, with investors closely scrutinizing whether the company can translate its dominance in space into new markets tied to AI and semiconductor manufacturing.
The company plans to fix its IPO price at $135 per share to raise a record-setting $75 billion, a source familiar with the matter told Reuters on Tuesday. SpaceX plans to target a valuation of $1.75 trillion in its blockbuster initial public offering.
The vote came after a heated hearing that drew more than 100 residents to the Grimes County courthouse. Speakers warned the project could strain water and power supplies, harm wildlife and permanently alter the county's rural character. One resident fought back tears while describing the potential impact of industrialization on the community and environment.
Home to roughly 34,000 residents, Grimes County is characterized by sprawling ranches and open land. Residents said the proposed site near the Gibbons Creek Reservoir is defined by dark night skies, abundant wildlife and a quiet agricultural lifestyle.
"They sold out Grimes County," one person said as hearing attendees streamed out of the room after the votes.
(Reporting by Sheila Dang in Anderson, Texas, and Akash Sriram in New York; Editing by Matthew Lewis and David Gregorio)
