Key Points
- The U.S. Commerce Department awarded GlobalWafers $406 million in grants. The funding will support wafer production projects in Texas and Missouri.
- GlobalWafers will invest $4 billion, creating 1,700 construction and 880 manufacturing jobs.
- The CHIPS Act aims to reduce reliance on East Asia, where 90% of silicon wafers are produced.
- The Commerce Department is rushing to finalize awards before Trump’s January 20 inauguration.
On Tuesday, the U.S. Commerce Department announced that it had finalized $406 million in government grants to Taiwan-based GlobalWafers to significantly expand silicon wafer production in the United States. The funding will support projects in Texas and Missouri, marking the first large-scale U.S. production of 300-mm silicon wafers used for advanced semiconductors and expanding the production of silicon-on-insulator wafers. These components are essential for advanced semiconductors, aligning with the Biden administration’s push to strengthen the domestic semiconductor supply chain.
GlobalWafers will invest nearly $4 billion to build and expand manufacturing facilities, creating 1,700 construction jobs and 880 manufacturing positions across the two states. CEO Doris Hsu emphasized the benefits of localization, particularly as global supply chains face tariffs and other geopolitical challenges. She noted that countries with high demand for silicon wafers tend to prioritize local production, supported by regional customers.
When asked about uncertainties surrounding U.S. CHIPS Act grants once President-elect Donald Trump assumes office, Hsu expressed confidence that the subsidies would continue. She pointed out that the CHIPS Act originated during Trump’s first term, increasing the likelihood of its continuation. However, she highlighted challenges such as sourcing raw materials domestically and uncertainties tied to Trump’s proposed tariffs.
GlobalWafers announced 2022 plans to build a $5 billion plant in Sherman, Texas, to manufacture 300-mm silicon wafers, a key decision after scrapping a similar investment in Germany. Along with the Texas project, the company will establish a new facility in St. Peters, Missouri, to produce wafers critical for aerospace and defense chips. Over 90% of global silicon wafers are manufactured in East Asia, and five major companies, including GlobalWafers, control 80% of the global market.
The Commerce Department is accelerating efforts to finalize awards under the $52.7 billion CHIPS and Science Act before Trump takes office on January 20, underscoring the urgency to secure U.S. semiconductor production capabilities.
