SpaceX has filed paperwork for a $55bn semiconductor fabrication facility in rural Texas, internally called Terafab. Unlike the existing Bastrop packaging operation (which packages silicon dies into RF chips for Starlink terminals), Terafab would be an actual fab producing silicon at process nodes. Combined with the Bastrop expansion, the two facilities represent a $119bn Texas chipmaking footprint that would become the largest PCB and panel-level-packaging facility in North America. The strategic rationale is vertical integration: owning fabrication, packaging, and PCB manufacturing removes third-party margins and gives SpaceX direct supply-chain control for Starlink hardware. Key unknowns remain: the specific process technology and construction timeline have not been disclosed, with the most likely initial focus being mature-node RF and ASIC components rather than leading-edge competition with TSMC.
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