The $280 million expansion of SpaceX Bastrop, Texas facility continues to evolve from a state-backed manufacturing upgrade into a strategically significant node in the company’s broader AI and semiconductor ambitions. Initially announced in 2025 with support from the Texas Semiconductor Innovation Fund, the project is now well into execution, with equipment installation underway and production targeted by the end of 2026.

The expansion will add about one million square feet to the site and is expected to create more than 400 jobs. This is while enabling in-house production of packaged silicon and Starlink hardware. These are key components in SpaceX’s satellite and data infrastructure. Additionally,the Bastrop facility is expected to serve not only as a production site, but also as a bridge between space technology, AI systems, and independent supply chains. This is all while Texas continues to position itself as a leading hub for domestic semiconductor manufacturing in the US.

SpaceX’s Bastrop Facility to Undergo $280 Million Expansion

Reported March 13, 2025 – 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.

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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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