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BASTROP — Elon Musk’s footprint in Bastrop County is positioned to continue its growth with more state funding, Gov. Greg Abbott announced last week.
According to a March 12 statement, Musk’s Space Exploration Technologies Corporation, or SpaceX, has been extended $17.3 million from the Texas Semiconductor Innovation Fund to expand its semiconductor research, development and advanced packaging facility.
The fiscal boost is expected to create more than 400 jobs and bring over $280 million in capital investment, according to the governor.
“Texas connects the nation and the world with the most advanced technologies manufactured right here in our great state,” Abbott said, adding that SpaceX’s Bastrop facility will be the largest of its kind in North America.
SpaceX President and Chief Operating Officer Gwynne Shotwell said the grant will help bolster Starlink manufacturing in Bastrop, noting that the company is investing hundreds of millions of dollars into the local facility.
Over the next three years, the Bastrop site will expand by 1 million square feet to produce Starlink kits and components, including printed circuit boards, a semiconductor failure analysis lab and panel-level packaging advancements, according to the governor’s office.
Abbott also emphasized the state’s intent to remain at the forefront of the field, and its commitment to reducing reliance on international chipmakers.
“Working together with innovative industry leaders like SpaceX, Texas will continue to rank number one for semiconductor research and high-tech manufacturing and secure critical domestic supply chains as we build a stronger, more prosperous Texas than ever before,” he said.
State Sen. Charles Schwertner and State Rep. Stan Gerdes praised the move, calling it transformative for the county.
Local officials say the expansion aligns with other major Musk-affiliated developments in Bastrop.
Referencing the recent relocation social media platform X’s headquarters to the area, City Manager Sylvia Carrillo-Trevino said the region’s population is expected to climb 42% in the next five years, increasing from about 14,000 to 20,000 residents.
“We believe it will lead to astronomical growth,” Carrillo-Trevino said, noting that many executives are already on-site alongside SpaceX employees.
She added that the city has taken steps to accommodate expanded wastewater needs and safeguard the nearby Colorado River as development accelerates.
Construction of worker housing is also underway, with plans to serve both new arrivals and the general public in the coming year.
Officials say the influx of Musk’s Bastrop-based businesses—including SpaceX, X and the tunnel-drilling Boring Co.—signals a major shift in Bastrop’s economic landscape.
