The U.S. Commerce Department has announced that it has officially approved $406 million in government grants to GlobalWafers, a company based in Taiwan.
The United States is planning to ramp up the production of silicon wafers significantly.
According to the Commerce Department, the funds allocated for projects in Texas and Missouri will be used to establish the first high-volume production of 300-mm wafers for advanced semiconductors in the United States. Additionally, the funding will also be used to expand the production of silicon-on-insulator wafers.
Wafers play a critical role in advanced semiconductors and are an essential part of the Biden administration’s strategy to enhance the domestic chips supply chain.
GlobalWafers will receive a subsidy that will help them make nearly $4 billion in investments in both states. This will be used to build new wafer manufacturing facilities and create 1,700 construction jobs and 880 manufacturing jobs.
GlobalWafers CEO Doris Hsu emphasized the benefits of localization during a conference call in Taiwan. She highlighted that in a time when the global chip supply chain is facing tariffs, there are advantages to prioritizing local supply in countries with high demand for silicon wafers. Hsu also mentioned that local customers will be supportive of this approach.
She was asked if the company anticipated any potential uncertainties with U.S. CHIPS Act grants in light of President-elect Donald Trump’s upcoming inauguration next month. In response, she stated that they would wait to see if he made any new decisions.
Currently, in addition to the Act, there exists a contract that holds legal protection. Given that the CHIPS Act was first introduced during Trump’s initial term, it is more likely to be implemented.
The company, however, faces challenges in obtaining all the necessary supplies from within the U.S. for its manufacturing facilities. According to her, some raw materials and consumables will need to be imported, which introduces an element of uncertainty due to the proposed tariffs by Trump.
“Some customers have already started requesting quotes that include shipping and tariffs, but unfortunately, we are unable to provide them at this time due to the uncertainty surrounding the tariffs,” she explained. GlobalWafers, with its 18 factories spread across nine countries, is facing this challenge.”
In 2022, GlobalWafers announced its plans to
A decision has been made to establish a new plant in Texas instead of pursuing the previous plan to invest in Germany. This plant will be responsible for manufacturing 300-mm silicon wafers, which are widely used in the production of semiconductors.
Five major companies, including GlobalWafers, currently dominate over 80% of the global 300-mm silicon wafer manufacturing market. It is noteworthy that the production of silicon wafers is concentrated in East Asia, accounting for about 90% of the total output.
GlobalWafers has announced its plans to construct and expand facilities in Sherman, Texas, with the aim of producing wafers for the manufacturing of cutting-edge, mature-node, and memory chips. Additionally, the company intends to establish a new facility in St. Peters, Missouri, dedicated to the production of wafers for defense and aerospace chips.
The Commerce Department is rushing to complete the awards for the 2022 CHIPS and Science Act semiconductor manufacturing and research subsidy program, which amounts to $52.7 billion. Their goal is to finalize these awards before Trump’s term ends on Jan. 20.
