Investing.com -- SpaceX is proposing to invest $55 billion to build a semiconductor production facility in Texas, according to a Bloomberg report that cites a public notice posted on the Grimes County website Wednesday.

The rocket company plans to construct a next-generation, vertically integrated semiconductor manufacturing and advanced computing fabrication facility in the state. The total capital investment could reach $119 billion if additional project phases are completed.

Elon Musk introduced the Terafab concept in March as a joint venture between SpaceX and Tesla Inc. to manufacture chips for his robotics, space and artificial intelligence projects. Musk said the semiconductor industry was moving too slowly to meet the chip requirements for his initiatives and the broader tech industry.

The facility aims to produce 2 nanometer chips and would eventually support a terawatt of computing power per year, the amount Musk expects the companies to use as he expands AI and robotics investments.

SpaceX representatives contacted chip equipment manufacturers, including Applied Materials Inc., Tokyo Electron Ltd. and Lam Research Corp., to obtain price quotes and delivery schedules for semiconductor production equipment, Bloomberg reported in April.

The Grimes County notice was posted for a public hearing scheduled for June 3. SpaceX plans to use property near the Gibbons Creek Reservoir in Grimes County for the facility.