Musk builds Texas chip plant push

Elon Musk is advancing plans to establish a domestic semiconductor supply chain, with a new advanced packaging facility now under development in Texas. Reports indicate that the plant, managed by SpaceX, has entered the equipment delivery phase. It will utilize fan-out panel-level packaging technology, initially for producing Starlink components.

The Texas facility aims to begin volume production by the third quarter of 2026. This initiative addresses a critical bottleneck in the American chip supply chain. Musk's broader vision includes a proposed Tesla TeraFab for high-volume wafer production. The project represents a significant step toward creating an independent semiconductor ecosystem for the United States, with Tesla also exploring collaborations with companies like Intel on advanced packaging.
 

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