From DigiTimes Asia, November 13:
Elon Musk, owner [sic] of SpaceX and Tesla Inc., is making significant strides to develop a comprehensive semiconductor manufacturing supply chain in the US. Sources indicate that the fan-out panel-level packaging (FOPLP) plant in Texas has reached the equipment delivery phase and aims to commence volume production by late third quarter 2026.
Following unsuccessful attempts to secure priority capacity at Taiwan Semiconductor Manufacturing Company (TSMC), Musk shifted production strategy to mitigate supply risks and enhance control. Dojo 3 chip production is now distributed between TSMC and Samsung Electronics, with packaging operations handled at Intel's Arizona facility. Musk also alluded to possible future collaboration or investments with Intel, suggesting potential expansion of joint manufacturing efforts.
Musk's semiconductor ambitions align with a broader national effort to restore US leadership in chip manufacturing amid a global shortage. The US government, alongside industry giants such as Intel, Samsung, and TSMC, is facilitating expansion across multiple technology fronts. After negotiations with TSMC over supply terms faltered, Musk doubled down on in-house production capabilities to reduce dependence on external suppliers.
Musk completes PCB and packaging plants to enhance vertical integration
Insiders confirm that Musk has recently completed construction of a printed circuit board (PCB) factory in Texas, which is already operational, alongside the FOPLP packaging plant currently under deployment. SpaceX is managing the packaging site, aiming to vertically integrate satellite system production, particularly for Starlink components. Controlling packaging technology allows for tighter management of satellite chips, improving performance and reducing costs.Before the FOPLP plant becomes fully active, SpaceX has placed orders for satellite radio frequency (RF) chips and power management integrated circuits with STMicroelectronics and Innolux Corporation. Equipment delivery for the Texas packaging line started in September 2025, with installation planned for early 2026. The plant is expected to begin limited production by the third quarter of 2026, reaching full volume output by the first quarter of 2027. Initial monthly production is projected at around 2,000 units, gradually reducing reliance on wafers sourced externally from STMicro and Innolux.
Beyond packaging, Musk revealed at Tesla's recent shareholder meeting plans to construct a large wafer fabrication facility starting at 100,000 wafers per month, with potential expansion to one million wafers per month. This is intended to support Tesla's growing demand for AI and robotics chips and may involve cooperation with Intel on wafer manufacturing.
Industry experts highlight the scale of Musk's semiconductor ambitions
Musk continues partnerships with major foundries but remains concerned over persistent chip shortages that could create critical supply bottlenecks. He states that his mind is entirely focused on chips, highlighting Tesla's readiness to produce chips in-house if suppliers cannot meet demand....
