Texas Gov. Greg Abbott awards $17.3M semiconductor grant to SpaceX for Bastrop expansion
SpaceX Starship debris falls to Earth after rocket ‘disassembly’
SpaceX said it lost contact with its Starship rocket, which Elon Musk’s company said “experienced a rapid unscheduled disassembly.”
Governor Greg Abbott announced that Elon Musk’s SpaceX will receive the fifth Texas Semiconductor Innovation Fund grant, amounting to $17.3 million. According to a release, this funding will support the expansion of semiconductor research and development, as well as the establishment of an advanced packaging facility in Bastrop.
On Wednesday afternoon, Gov. Abbott’s office stated that this expansion is expected to generate over $280 million in capital investment and create at least 400 jobs.
“Texas connects the nation and the world with the most advanced technologies manufactured right here in our great state,” Abbott said in a statement. “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.”
The expansion project has a three-year timeline. As progress continues, SpaceX’s Bastrop facility is expected to grow by one million square feet. This growth is aimed at bolstering the production of Starlink kits and their components, including advanced packaged silicon products.
Starlink, a subsidiary of SpaceX, is a satellite company that provides 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, a semiconductor failure analysis lab, and advanced packaging for panel-level packaging. 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.”
As business interest has forced Bastrop to grow quickly to meet the demands of its new tenets, representatives from the area seem to be endorsing its presence in the community.
“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.”
Beck Andrew Salgado covers trending topics in the Austin business ecosystem for the American-Statesman. To share additional tips or insights with Salgado, email Bsalgado@gannett.com.
