State pushes to strengthen semiconductor leadership with SpaceX investment
Texas Governor Greg Abbott has announced a $17.3 million grant to SpaceX through the state’s Semiconductor Innovation Fund, further cementing Texas' position as a leader in semiconductor research and advanced manufacturing. The grant will support SpaceX’s ongoing expansion of its semiconductor research and development (R&D) facility in Bastrop, a project expected to generate over 400 jobs and attract more than $280 million in capital investment.
“Texas connects the nation and the world with the most advanced technologies manufactured right here in our great state,” Abbott said in a statement. “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.”
SpaceX’s Growing Footprint in Texas
The investment will allow SpaceX to expand its Bastrop semiconductor facility to one million square feet, making it the largest semiconductor R&D and advanced packaging facility in North America. The company, originally headquartered in Hawthorne, California, moved its main operations to Brownsville, Texas, in July 2024—an area that could soon be renamed "Starbase" if local voters approve a proposed municipal petition in May 2025.
Gwynne Shotwell, SpaceX’s President and Chief Operating Officer, highlighted the company’s commitment to Texas:
“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.”
Leaders Praise Economic and Technological Impact
State officials praised the grant as a major economic boost for Texas, reinforcing the state’s dominance in semiconductor production and high-tech manufacturing.
State Sen. Charles Schwertner (R-Georgetown) emphasized the importance of the semiconductor industry:
“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.”
State Rep. Stan Gerdes (R-Bastrop) called the expansion a "game-changer" for Texas:
“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.”
Texas CHIPS Act & the Semiconductor Innovation Fund
The Semiconductor Innovation Fund, which provided the grant to SpaceX, was established through the Texas CHIPS Act in 2023. The act created a new division within the governor’s office to support semiconductor research, design, and manufacturing, aiming to keep Texas at the forefront of the industry.
So far, the Semiconductor Innovation Fund has provided grants to four other semiconductor projects, strengthening Texas’ position as a hub for cutting-edge technological development.
Texas’ Role in the Future of Semiconductors
The push to expand semiconductor production comes amid global supply chain challenges and increased emphasis on domestic chip manufacturing. The U.S. government, through the federal CHIPS and Science Act, has encouraged investments in semiconductor facilities to reduce reliance on foreign manufacturing—a goal that Texas is actively working to achieve.
With SpaceX’s expanded presence in Bastrop, Texas is positioning itself as a national leader in semiconductor innovation, ensuring that key technologies—ranging from consumer electronics to defense systems—are developed and produced domestically.
