SpaceX will build an advanced chip packaging factory in Texas

On June 6, according to Tom's hardware, industry rumors show that in order to meet its own needs, SpaceX is planning to establish a chip packaging factory in Texas, USA to introduce panel-level fan-out packaging (FOPLP) technology, and its substrate size is as high as 700mm x 700mm, the largest size in the industry.

At present, most of SpaceX chip packaging is handed over to European STMicroelectronics packaging, and some orders that exceed production capacity are handed over to Qunchuang Foundry. However, SpaceX is actively promoting internal production of its own chips. The company built the largest printed circuit board (PCB) manufacturing base in the United States in Bastrop, Texas last year, mainly to supply the circuit board (PCB) required for Starlink satellite systems.

This is crucial because it can help Musk build a vertically integrated satellite production line, allowing him to reduce costs and be able to make changes quickly as needed. Chip packaging is the logical next step for SpaceX, especially since some FOPLP processes are similar to PCB manufacturing, such as copper plating, laser direct imaging, and semi-additive manufacturing processes.

In addition to bringing chip manufacturing back to China, vertical integration is also very beneficial to SpaceX's long-term profitability. Its 7,600 powerful satellite network is currently the largest satellite network in orbit, and SpaceX plans to launch more than 32,000 more satellites for true global coverage. Not only that, the company has also signed several contracts to manufacture satellites for the U.S. government. Given the critical nature of these systems, the chips they use are best made in the United States. This will help ensure their physical security and prevent supply chains from being attacked that could endanger their operations at critical moments.

SpaceX is not the only company that plans to bring chip packaging back to the United States. Among the additional $100 billion in the United States that TSMC announced that it would build two advanced packaging factories in the United States. Foundry GlobalFoundries has also previously announced a $575 million investment to expand its New York plant to accommodate packaging and photonics facilities. Recently, GlobalFoundries also announced a $16 billion investment to expand its semiconductor manufacturing and advanced packaging capabilities at its New York and Vermont factories.

SpaceX's FOPLP packaging manufacturing will provide manufacturers with more options for manufacturing in the United States, especially because the technology is more suitable for the aerospace, communications and aerospace industries. While they are not as strong as the cutting-edge wafer manufacturers operated by TSMC, packaging plants are just as important in the semiconductor supply chain.

Editor: Xinzhixun-Langkejian