SpaceX installs chip equipment in Texas facility

SpaceX has begun installing equipment at its advanced chip packaging facility in Bastrop, Texas, as the company moves closer to starting production later this year, according to sources familiar with the matter.

The facility is designed to package radio frequency (RF) chips used in products linked to SpaceX’s Starlink satellite internet system. Once operational, it will bring part of the chip packaging process in-house, which is currently handled by external suppliers, News.Az reports, citing Reuters.

Sources said the project has experienced some delays, but SpaceX is still targeting production to begin by the end of 2026.

The Bastrop site is part of a broader expansion of SpaceX’s manufacturing footprint in Texas. The company has been scaling up infrastructure to support Starlink hardware production, including satellite terminals and related components.

Texas Governor Greg Abbott previously said the facility is expected to expand significantly over the next three years, adding up to 1 million square feet of manufacturing space. The expansion is projected to cost more than $280 million.

The move also reflects SpaceX CEO Elon Musk’s broader push to strengthen in-house semiconductor capabilities. The company has recently outlined plans to develop advanced chip manufacturing capacity across its Texas operations.

While SpaceX did not immediately respond to requests for comment, the development signals a deeper vertical integration strategy aimed at reducing reliance on external suppliers and tightening control over critical components used in its global satellite network.

News.Az 

By Aysel Mammadzada