SpaceX sues Texas officials to block the release of records concerning its Terafab semiconductor facility.

The tax-abatement agreement would waive SpaceX’s property taxes in exchange for payments of $10 million in the first year and $20 million annually for 35 years.
The public-records requests were filed by Grimes County residents Marie Egyed and Vanessa Burzynski on behalf of Grimes County Citizens for Responsible Development.
SpaceX asked the court for a temporary restraining order and temporary and permanent injunctions to prevent the records’ release, as well as a declaratory judgment concerning the company’s rights.
SpaceX and Tesla’s Terafab project is intended to produce chips for self-driving vehicles, humanoid robots and space-based data centers; the facility is described as a vertically integrated operation covering manufacturing, packaging and testing of advanced logic and memory devices.
SpaceX said Grimes County did not notify it of the records requests until July 2, despite the Texas Public Information Act’s requirement that agencies make a good-faith effort to notify third parties within 10 business days when seeking an attorney general opinion on proprietary information.
SpaceX is suing Texas Attorney General Ken Paxton and Grimes County to stop the release of records about its planned Terafab semiconductor factory. Modesto Bee reported that the company fears disclosure would expose confidential costs, technical details, and negotiating strategies to competitors. The records include SpaceX's tax-abatement application and communications with county officials about incentives for the massive $16.8 billion first-phase project.
Local residents Marie Egyed and Vanessa Burzynski filed public-records requests on behalf of Grimes County Citizens for Responsible Development, seeking details about the tax deal. Tri-City Herald noted that Paxton's office ruled in July that most records should be released, though some attorney-client communications could stay confidential. SpaceX is asking the court to block the release entirely.
Terafab will manufacture semiconductors for self-driving vehicles, humanoid robots, and space data centers. Bradenton Herald reported the facility spans more than 100 million square feet and could ultimately cost up to $119 billion. Under the tax agreement, SpaceX would pay $10 million in year one, then $20 million annually for 35 years—waiving all property taxes during that period.
SpaceX argues that releasing the records would damage its competitive position and reveal sensitive business strategies. The company asked the court for a temporary restraining order and permanent injunction to block publication. SpaceX says the county should not have delayed notifying the company about the records requests—Texas law requires agencies to make a good-faith effort to notify companies within 10 business days.
The citizens group pushing for records release has raised concerns about Terafab's effects on rural life, property values, infrastructure, and the environment. BND reported that the public-records fight reflects broader tension between SpaceX's secrecy and community demands for transparency. Some residents want to understand the full scope of tax incentives before the project moves forward.
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