Texas Border Business
AUSTIN, Texas – Governor Greg Abbott has announced that the fifth Texas Semiconductor Innovation Fund grant of $17.3 million has been extended to Space Exploration Technologies Corporation (“SpaceX”) for an expansion of their semiconductor research and development (R&D) and advanced packaging facility in Bastrop. This expansion is expected to create more than 400 jobs and more than $280 million in capital investment.
“Texas connects the nation and the world with the most advanced technologies manufactured right here in our great state,” said Governor Abbott. “I congratulate SpaceX on their more than $280 million investment in this Texas-sized expansion of their semiconductor R&D and advanced packaging facility in Bastrop, which will be the largest of its kind in North America. Working together with innovative industry leaders like SpaceX, Texas will continue to rank No. 1 for semiconductor research and high-tech manufacturing and secure critical domestic supply chains as we build a stronger, more prosperous Texas than ever before.”
Over the next three years, SpaceX’s Bastrop facility will expand by one million square feet to produce Starlink kits and their component parts, including advanced packaged silicon products. Starlink satellites provide high-speed, low-latency broadband internet to more than five million people and businesses in over 120 countries and territories. The proposed project includes printed circuit boards (PCBs), a semiconductor failure analysis lab, and advanced packaging for panel level packaging (PLP). Once complete, the Bastrop facility will be the largest PCB and PLP facility in North America.
“Incredible innovation and high-tech manufacturing is happening in Texas as a direct result of Governor Abbott’s leadership and the Texas Semiconductor Innovation Fund initiative,” said SpaceX President and Chief Operating Officer Gwynne Shotwell. “We love Texas. SpaceX is investing hundreds of millions of dollars into our Bastrop facility. This grant will help continue to expand Bastrop’s manufacturing for Starlink to help connect even more people across the state and around the world with high-speed, low-latency internet.”
“We are incredibly fortunate to have a world-class facility like SpaceX in Bastrop County,” said Senator Charles Schwertner. “From the cell phones in our pockets to strengthening our national defense, semiconductors power our everyday lives. This investment will bring hundreds of high-paying jobs to the area and serve as a catalyst for further economic growth. I look forward to SpaceX’s continued technological advancements as they revolutionize the industry.”
“This investment is a game-changer for Bastrop and for Texas,” said Representative Stan Gerdes. “SpaceX’s expansion reinforces Texas as the nation’s leader in high-tech manufacturing and semiconductor innovation. With hundreds of new jobs and a stronger domestic supply chain, this project is a huge win for our economy, our workforce, and our future.”
View more information about SpaceX.
Governor Abbott signed into law the Texas CHIPS Act in 2023 to establish the Texas Semiconductor Innovation Fund, a performance-based incentive program to encourage the continued leadership of Texas in semiconductor research, design, and manufacturing, as well as the Texas Semiconductor Innovation Consortium. These programs, administered by the Texas CHIPS Office, a newly formed division within the Governor’s Texas Economic Development & Tourism Office, are designed to leverage Texas’ investments in the semiconductor industry, encourage semiconductor-related companies to expand in the state, further develop the expertise and capacity of Texas institutions of higher education, and maintain the state’s position as the nation’s leader in semiconductor manufacturing.
