Musk is assembling a full U.S.-based semiconductor production and packaging chain — encompassing PCB manufacture, FOPLP processing, and a planned wafer fab designed to meet the demands of Tesla, SpaceX, and Starlink.
Musk is building his own counterparts to TSMC, LAM Research and Tokyo Electron, customized for his programs and able to operate autonomously in critical situations. The move is sensible given global capacity limits, supply-chain disruptions, and Musk’s failed effort to secure prioritized access from TSMC.
The effort launched with two sites: a new PCB center in Texas is already operational, while an FOPLP facility has begun equipment installation and targets limited production in the third quarter of 2026.
SpaceX aims to consolidate satellite chip packaging to reduce costs and gain full control over Starlink components. Until in-house production comes online, RF and power-management chips from STMicro and Innolux are being used, but these are expected to be replaced by internal production by 2027.
In roughly 18 months, Musk’s companies plan to be manufacturing products entirely in-house to their own specifications and standards.
Also planned is a mega wafer fab with an initial capacity of 100,000 wafers per month — and a long-term goal of 1,000,000 per month — capable of producing 14 nm and smaller nodes. That capacity would allow Tesla and SpaceX to sidestep geopolitical restrictions and the capacity shortfalls in Taiwan and South Korea. Musk has recruited engineers from Intel, TSMC and Samsung and is concentrating his efforts on chipmaking.
Source: iXBT.games