(The Center Square) - In another instance of a billion-dollar corporation securing millions in government funding for expansion, SpaceX is set to receive taxpayer money to grow its operations in Bastrop, Texas.
The company founded by Elon Musk,SpaceX, has been awarded the fifth Texas Semiconductor Innovation Fund grant worth $17.3 million. This funding will be used for expanding their semiconductor research and development as well as enhancing their advanced packaging facilities in Bastrop. In connection with this, SpaceX plans to invest approximately $280 million in capital. The project anticipates generating over 400 new job opportunities.
Texas links the country and the globe using cutting-edge technologies produced right within our magnificent 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.
“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,” he added.
Under the Texas CHIPS Act, approximately $700 million in taxpayer grants will be distributed via the TSIF, as reported by The Center Square.
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So far, the funds have been granted to firms boasting multi-billion-dollar valuations. As of December, SpaceX's valuation was $350 billion, which makes it the globe's most valued privately-held company.
according to
Bloomberg News.
In the coming three years, SpaceX’s Bastrop site is anticipated to grow by an additional one million square feet with the aim of manufacturing and producing Starlink equipment and components such as sophisticated encapsulated silicon items. Presently, Starlink satellites offer fast, low-delay broadband internet services 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 Bastrop location operated by SpaceX will stand out as the biggest center for both PCBs and PLPs within North America.
"We have great affection for Texas. SpaceX is committing hundreds of millions of dollars to our Bastrop site. This grant will assist in further expanding Bastrop’s production capabilities for Starlink, enabling us to bring high-speed, low-latency internet connectivity to an increased number of individuals throughout the state and globally," stated Gwynne Shotwell, President and Chief Operating Officer at SpaceX.
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 are essential for everything from smartphones we carry around to bolstering our national security, play a crucial role in modern life. This investment will create numerous well-paid positions locally and act as a springboard for additional economic expansion."
In reaction to supply chain issues under President Joe Biden’s administration, Abbott along with key corporations focused on increasing semiconductor production in Texas. In this effort, the state legislature enacted the Texas CHIPS Act, legislation that was subsequently signed into law by Abbott in 2023. This act established the Texas Semiconductor Innovation Consortium and introduced the TSIF grants, alongside additional measures aimed at establishing Texas as the foremost hub for semiconductors within the US. The Center Square
reported
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The initial TSIF grant of $4.12 million went to Intelligent Epitaxy Technology, Inc., enabling them to broaden their operational capacity at the wafer manufacturing site located in Allen. A subsequent award of $2.4 million was granted to Dongjin Semichem Texas for developing their speciality chemicals and materials plant situated in Killeen, as reported by The Center Square.
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The Austin-based company Silicon Laboratories Inc. has been granted the highest amount yet at $23.25 million to aid their work on researching and developing wireless products. In addition, the fourth TSIF grant totaling $2 million was presented to KoMiCo Technology, Inc.'s facility located in Round Rock, which is based in Korea.
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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 capacity over the long haul. This stands as the most significant private-sector financial outlay ever recorded within the state’s borders.
Additionally, in Sherman and for the year 2022, Taiwan’s GlobalWafers Co. declared plans to construct a facility for producing 300-millimeter silicon wafers.
In 2023, Texas was crowned number one for possessing the optimal business environment and topped the list for semiconductor manufacturing. Additionally, it has maintained its position as the leading exporter of semiconductors and various electronic components within the U.S. for thirteen consecutive years, according to The Center Square.
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Texas tops the nation in new chip production; over 43,000 people are presently employed in Texas’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.
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