To boost America’s semiconductor supply chain, the US government has sanctioned $400 Million to GlobalWafers of Taiwan for increasing silicon wafer manufacturing.
On Wednesday, the Commerce Department of the United States announced plans to grant Taiwan’s GlobalWafers up to $400 million to boost silicon wafer production.
The Commerce Department stated that the funding will set up the first US production of 300-mm wafers for advanced semiconductors and increase the output of silicon-on-insulator wafers in Texas and Missouri.
The proposed investment aims to build new wafer facilities, creating 1,700 construction jobs and 880 manufacturing jobs, with a total capital outlay of around $4 billion in both states.
US Commerce Secretary Gina Raimondo noted that the Taiwanese chipmaker will be vital in strengthening America’s semiconductor supply chain by supplying a domestic source of silicon wafers essential for advanced chips.
GlobalWafers stated that it would use the subsidy to expand its Sherman, Texas facilities to produce various wafer types and build a new plant for defence and aerospace chips in St. Peters, Missouri. Additionally, it will convert part of its Texas facility to manufacture silicon carbide wafers for electric vehicles and clean energy.
At present, five companies, including GlobalWafers, dominate over 80% of the global 300mm silicon wafer market, with around 90% of production concentrated in East Asia.
In 2022, GlobalWafers announced plans to build a $5 billion facility in Texas to produce 300-mm silicon wafers for semiconductors. This decision replaced a previous investment plan in Germany, driven by geopolitical concerns and the need to enhance the resilience of the US semiconductor supply chain.
The funding is part of the CHIPS and Science Act, signed by President Biden in 2022, which seeks to enhance domestic semiconductor wafer production and strengthen US technological leadership. This initiative includes a $52.7 billion research and manufacturing subsidy program to revitalise the supply chain, create high-quality jobs, and stimulate future industry investments.
This fund, totalling up to $30.1 billion, is still awaiting final approval and may be adjusted following further review by the Commerce Department.
