Although SpaceX does not produce its own chips yet, it’s reportedly expanding into fan-out panel-level packaging (FOPLP) and aiming to build a chip packaging facility in Texas. According to Digitimes, Musk’s company currently has most of its chips packaged by European company STMicroelectronics, but has also subcontracted Taiwanese firm Innolux for orders that the former cannot accommodate.
However, SpaceX is also pushing to build its chips in-house as part of the U.S.’s push for semiconductor independence. The company opened the largest printed circuit board (PCB) manufacturing site in the U.S. at Bastrop, Texas, last year, which is intended to supply Starlink’s demand. This is crucial as it can help Musk build a vertically integrated satellite manufacturing line, allowing him to reduce costs and be able to quickly make changes as needed. Chip packaging is the logical next step for SpaceX, especially as a few FOPLP processes are similar to PCB manufacturing, like copper plating, laser direct imaging, and semi-additive processes.
SpaceX’s entry with FOPLP will give manufacturers more American-made options, especially as this technique is more suitable for aerospace, communications, and space industries. Although they’re not as sexy as cutting-edge chip fabs, like the ones that TSMC operates, packaging plants are just as crucial in the semiconductor supply chain. That’s because they are the ones that turn semiconductors into usable chips, ready for installation on PCBs and other electronics that are practically found everywhere.
