SpaceX Advances Texas Chip Plant, Eyes Production By End Of 2026: Report - Amazon.com (NASDAQ:AMZN), Alph

SpaceX has reportedly initiated equipment installation at its advanced chip packaging facility in Bastrop, Texas.

The company aims to begin production by the end of 2026, Reuters reported on Friday, citing sources.

The aerospace giant is moving to bring semiconductor processes in-house. The facility will package radio frequency (RF) chips.

These components are vital for Starlink, the company's satellite-based internet system. External providers currently handle this packaging, but SpaceX plans to transition at least part of this process to the Texas site.

Navigating Timeline Delays

The project has faced some hurdles as the timeline has seen delays, according to the report.

Despite these setbacks, the company still targets a production start before the year-end.

Tesla Inc (NASDAQ:TSLA) CEO Elon Musk continues to build the space company's semiconductor capabilities.

Last month, he unveiled plans for advanced chip factories in Austin, Texas.

Addressing Global Chip Shortages

SpaceX's move mirrors a broader trend as companies grapple with a global shortage of specialized hardware.

For instance, Anthropic is reportedly evaluating in-house chip development as demand for its Claude AI surges.

By building proprietary capabilities, companies like SpaceX and Anthropic aim to secure their supply chains and optimize performance for specific technical needs.

The Push for Custom Silicon

Despite the hurdles, the industry is shifting toward custom silicon. Meta Platforms Inc. (NASDAQ:META) and OpenAI are also exploring these strategies.

Image via Shutterstock

This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Market News and Data brought to you by Benzinga APIs

To add Benzinga News as your preferred source on Google, click here.