Samsung to produce SpaceX Starlink satellite chips at its Austin, Texas fab
Samsung plans to manufacture chips for SpaceX's Starlink satellites at its semiconductor plant in Austin, Texas, starting production of the STM32V8 microcontroller unit.
The chip in question is the STM32V8 microcontroller unit, a small but crucial component that enables Starlink satellites to communicate with each other in orbit. This co-developed chip with STMicroelectronics will now be partially produced in Austin, expanding manufacturing to two continents instead of just France.
Investment and Expansion
Samsung is investing $1.9 billion into expanding its Austin facility, part of a larger $37 billion commitment across Texas. The project is supported by up to $4.745 billion in subsidies from the US CHIPS Act, which aims to bring semiconductor manufacturing back to American soil.
The Austin site will focus on specialty chips for aerospace, defense, and automotive customers, while Samsung's newer facility in Taylor, Texas handles advanced AI chips for clients like Tesla and Nvidia.
Strategic Benefits
For SpaceX, having a second production source reduces concentration risk by not relying solely on the French facility. For Samsung, winning a high-profile aerospace customer strengthens its credibility in the foundry business and justifies its substantial Texas investment.
The Austin facility sits close to SpaceX's headquarters, which shortens the physical distance between chip supplier and customer.
Future Outlook
Operational capacity for the expanded Austin facility is targeted for 2030, according to project details from the NIST and the Commerce Department. For US policymakers, this arrangement represents the ideal outcome the CHIPS Act was designed to achieve—bringing strategic aerospace and defense components to American soil.
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