SpaceX’s facility in Bastrop, Texas, is set to undergo a major expansion with a capital outlay of over $280 million. The Texas Semiconductor Innovation Fund will contribute part of the funding for the project.
Texas Gov. Greg Abbott announced March 12 that SpaceX will receive a grant of $17.3 million to expand its semiconductor research and advanced packaging operations in Bastrop. The development, Abbott announced, will draw more than $280 million in capital investment and bring over 400 new jobs.
The grant is funded by the Texas Semiconductor Innovation Fund established by the Texas CHIPS Act of 2023. The program, introduced by the governor, provides state-funded grants to encourage semiconductor manufacturing in Texas.
“Texas is at the forefront of cutting-edge technology, manufacturing some of the world’s most advanced products,” Abbott said. “I commend SpaceX for its substantial $280 million investment in the expansion of its Bastrop semiconductor R&D and packaging facility, the largest such facility in North America.”
SpaceX’s Bastrop Facility to Grow by 1M Square Feet
SpaceX will be expanding its Bastrop facility by 1 million square feet in the next three years. The expansion would revolve around producing Starlink kits and the different components, including advanced silicon packaging solutions.
The facility expansion will also include innovations in printed circuit board (PCB) production, a semiconductor failure analysis lab, and panel-level packaging (PLP) technology. When completed, the Bastrop plant will be the largest PCB and PLP factory in North America.
“Due to Governor Abbott’s leadership and the Texas Semiconductor Innovation Fund, Texas remains a center of groundbreaking innovation and high-tech manufacturing,” said Gwynne Shotwell, President and Chief Operating Officer of SpaceX. “We are strongly invested in Texas and are spending hundreds of millions at our Bastrop facility. This grant will further assist in our goal to produce Starlink products and bring high-speed, low-latency internet access to the world.”
SpaceX is not the only one in Central Texas to benefit from this fund. Abbott said on March 7 that Round Rock-based KoMiCo Technology Inc. was awarded $2 million. SpaceX is now the fourth company in the area—and the fifth overall—to be funded by the Texas Semiconductor Innovation Fund.
In addition, SpaceX has also requested federal designation as a foreign trade zone for its Bastrop factory. The designation, if approved, would enable the company to obtain some tax benefits for manufacturing operations.
Read also: New York teams up with IBM, Micron for $10B semiconductor facility at Albany University
SpaceX Bastrop Facility Expansion: Project Factsheet
Project Overview
Investment Amount: $280+ million capital investment
Location: Bastrop, Texas
Facility Expansion: 1 million square feet over the next three years
Job Creation: 400+ new positions
Grant Awarded: $17.3 million from Texas Semiconductor Innovation Fund
Project Focus: Semiconductor research, advanced packaging operations, and Starlink components
Key Technology Developments
Production of Starlink kits and components
Advanced silicon packaging solutions
Printed circuit board (PCB) manufacturing
Semiconductor failure analysis laboratory
Panel-level packaging (PLP) advancements
Economic Impact
Will become North America’s largest PCB and PLP facility upon completion
Solidifies Texas’s position in high-tech manufacturing
Part of broader semiconductor innovation ecosystem in Central Texas
Potential foreign trade zone designation (pending approval)
SpaceX’s Bastrop facility expansion: Funding Background
Grant provided through Texas CHIPS Act of 2023
Texas Semiconductor Innovation Fund supports in-state semiconductor manufacturing
SpaceX is the fifth company overall to receive funding from this initiative
Fourth company in Central Texas region to be awarded funds
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