Austin News

Governor Greg Abbott has announced a significant grant of $17.3 million from the Texas Semiconductor Innovation Fund to Space Exploration Technologies Corporation, commonly known as SpaceX. This funding is allocated for the expansion of SpaceX's semiconductor research and development (R&D) and advanced packaging facility located in Bastrop, Texas. The project is expected to generate over 400 jobs and attract more than $280 million in capital investment.

Governor Abbott remarked on the occasion, stating, “Texas connects the nation and the world with the most advanced technologies manufactured right here in our great state.” He highlighted SpaceX's substantial investment in expanding their Bastrop facility, which he claims will become North America's largest semiconductor R&D and advanced packaging site. The Governor emphasized that collaborations with industry leaders like SpaceX are crucial for maintaining Texas' position as a leader in semiconductor research and high-tech manufacturing.

SpaceX plans to expand its Bastrop facility by one million square feet over the next three years. This expansion will facilitate the production of Starlink kits and their components, including advanced packaged silicon products. Starlink satellites are known for providing high-speed, low-latency broadband internet services to over five million users globally across more than 120 countries and territories. The project will include facilities for printed circuit boards (PCBs), a semiconductor failure analysis lab, and advanced panel level packaging (PLP). Upon completion, it is anticipated that this facility will be the largest PCB and PLP center in North America.

Gwynne Shotwell, President and Chief Operating Officer of SpaceX, expressed appreciation for Governor Abbott’s leadership and acknowledged the role of the Texas Semiconductor Innovation Fund initiative. "Incredible innovation and high-tech manufacturing is happening in Texas," Shotwell stated. She also emphasized SpaceX's commitment to investing significantly into their Bastrop operations.

Senator Charles Schwertner lauded the investment as a boon for Bastrop County, noting its potential to bring numerous high-paying jobs to the region while bolstering economic growth. Representative Stan Gerdes echoed these sentiments, describing the investment as transformative for both Bastrop and Texas at large by reinforcing Texas' leadership in high-tech manufacturing.

The Texas CHIPS Act was signed into law by Governor Abbott in 2023 to create the Texas Semiconductor Innovation Fund—a performance-based incentive program aimed at promoting continued leadership in semiconductor sectors within Texas. Administered by the newly formed Texas CHIPS Office under the Governor’s Economic Development & Tourism Office, these programs are intended to bolster investments within the semiconductor industry while fostering expertise within Texan educational institutions.