Gov. Greg Abbott revealed Wednesday that SpaceX has received a $17.3 million grant from the Texas Semiconductor Innovation Fund to help boost its semiconductor development and advanced packaging facility in Bastrop.
The expansion is expected to generate over 400 new jobs and more than $280 million in capital investments, helping to establish Texas as a leader in semiconductor innovation, according to Abbott’s office.
“Texas connects the nation and the world with the most advanced technologies manufactured right here in our great state,” Abbott said. “… 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 Bastrop facility is expected to expand by more than one million square feet over the next three years, increasing its capacity to produce Starlink kits and their component parts. The grant will enable SpaceX to concentrate on the development of printed circuit boards (PCBs), establish a semiconductor failure analysis laboratory, and advance packaging techniques for panel-level packaging (PLP).
“Once complete, the Bastrop facility will be the largest PCB and PLP facility in North America,” according to Abbott’s March 12, 2025 press release.
Elon Musk’s Starlink satellites, which provide high-speed mobile internet, now serve more than five million people across 120 countries.
“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,” said SpaceX President Gwynne Shotwell.
Local leaders also praised the benefits coming along with the expansion for Texas.
“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, “said Senator Charles Schwertner (R-Georgetown). “I look forward to SpaceX’s continued technological advancements as they revolutionize the industry.”