SpaceX has begun work to build a factory in Texas that will perform advanced fan-out panel-level packaging (FOPLP). The facility will feature the largest packaging area in the industry to date, using a 700 mm x 700 mm substrate.

SpaceX is building its own chip packaging facility

The company currently works largely with Europe-based STMicroelectronics for the packaging process of chips used in its hardware, especially its Starlink systems. This latest move shows that SpaceX wants to reduce its reliance on external suppliers.

Last year, the company launched the country’s largest printed circuit board (PCB) manufacturing facility in Bastrop, Texas. It is stated that the new chip packaging facility will be an extension of this structure.

Chip packaging investments in the U.S. have increased significantly recently. Intel commissioned its $3.5 billion Foveros 3D packaging facility in New Mexico at the beginning of 2024. TSMC plans to build a new advanced packaging facility in 2025 with an investment of $42 billion.

GlobalFoundries expanded its New York production site and built a new $575 million photonics and packaging facility. It was also announced that the company will make additional investments of up to $16 billion in the US in the future.

SpaceX’s latest initiative not only takes control of its own production chain, but also contributes directly to the US’s semiconductor capacity. The company currently has more than 7,500 active satellites in orbit, and this number will increase to more than 32,000 with planned expansions