(The Center Square) - A corporation valued at over a billion dollars is set to receive millions in public funding to boost its expansion within Texas. This time around, it’s SpaceX expanding its operations in Bastrop, Texas.
The company founded by Elon Musk, Space Exploration Technologies Corporation—commonly known as SpaceX—has been awarded the fifth Texas Semiconductor Innovation Fund grant worth $17.3 million. This funding will support an increase in their efforts for researching and developing semiconductors along with enhancing their advanced packaging facilities located in Bastrop. In return, SpaceX plans to invest approximately $280 million in capital resources into this project. It’s anticipated that this expansion effort will result in over 400 new job opportunities.
"Texas links the country and the globe using the most cutting-edge technologies produced right here within our great state," Governor Greg Abbott stated, further noting that SpaceX’s "largely expanded presence" in Bastrop will constitute the biggest such development in all of North America.
"By collaborating with pioneering industry leaders such as SpaceX, Texas aims to maintain its position at the top for semiconductor research and advanced technology production. This partnership will also help stabilize crucial local supply chains as we work towards building an even stronger and more thriving Texas," he stated.
Under the Texas CHIPS Act, approximately $700 million in taxpayer grants will be distributed via the TSIF, as reported by The Center Square. reported So far, the funds have been granted to firms valued at multiple billions of dollars. As of December, SpaceX had a valuation of $350 billion, which made it the highest-valued privately held company globally. according to Bloomberg News.
In the coming three years, SpaceX’s Bastrop site is projected to grow by an additional one million square feet with the aim of manufacturing and producing Starlink equipment and components such as sophisticated integrated circuits. Currently, Starlink satellites offer rapid, minimal-delay broadband web access to over five million subscribers across approximately 120 nations and regions. This expansion encompasses plans for printed circuit boards, a laboratory dedicated to analyzing failures in semiconductors, and cutting-edge methods for panel-level packaging. Upon completion, the expanded Bastrop location will become the biggest center for both PCBs and PLPs in all of North America.
"We have a great affection for Texas. SpaceX is pouring hundreds of millions of dollars into our Bastrop facility. This grant will aid in further expanding Bastrop’s manufacturing capabilities for Starlink, enabling us to bring high-speed, low-latency internet connectivity to an increased number of people both within the state and globally," stated SpaceX President and Chief Operating Officer Gwynne Shotwell.
State Sen. Charles Schwertner, R-Georgetown, praised the initiative, stating, "It is remarkable to have a top-tier company such as SpaceX located in Bastrop County. Semiconductors, which play a crucial role from the devices we carry around to enhancing our national security, are integral parts of modern life. This venture will create numerous well-paid positions locally and act as a springboard for additional economic expansion."
Following supply chain disruptions under President Joe Biden’s administration, both Abbott and key corporations focused on increasing semiconductor production in Texas. In this vein, the state legislature enacted the Texas CHIPS Act, legislation that was subsequently approved by Governor Abbott in 2023. This act established entities such as the Texas Semiconductor Innovation Consortium along with the TSIF grant program, intended to reinforce Texas’ position at the forefront of America’s semiconductor sector. The Center Square reported .
The initial TSIF grant of $4.12 million went to Intelligent Epitaxy Technology, Inc., supporting their expansion efforts at the wafer manufacturing plant located in Allen. A subsequent award of $2.4 million was granted to Dongjin Semichem Texas for developing its specialty chemicals and materials site in Killeen, as reported by The Center Square. reported Austin-based Silicon Laboratories Inc. has been granted the highest amount yet at $23.25 million to aid in their work related to researching and developing wireless products. Meanwhile, the fourth TSIF grant totaling $2 million was presented to KoMiCo Technology, Inc.'s location in Round Rock, which is based in Korea. reported .
Before the passing of the Texas CHIPS Act, Texas Instruments commenced construction on a new semiconductor facility in Sherman during 2022. They declared a $30 billion commitment aimed at expanding their production capabilities over the long haul. This continues to stand as the most significant private-sector financial outlay in the state’s past.
Additionally, in 2022, Taiwan-based GlobalWafers Co. declared plans to construct a 300-millimeter silicon wafer fabrication plant in Sherman.
In 2023, Texas was tops in both business environment rankings and semiconductor manufacturing. It has also been the nation’s leader in exporting semiconductors and other electronic components for thirteen consecutive years, according to The Center Square. reported .
Texas tops the nation in new chip production with over 43,000 people presently employed in the state’s semiconductor sector.
The Texas CHIPS Act stands apart from the federal CHIPS Act that allocated approximately $6.5 billion for semiconductor production in Texas, according to The Center Square. reported .
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