The United States will provide up to $400 million to assist GlobalWafers America (GWA) and MEMC, subsidiaries of Taiwanese silicon wafer manufacturer Global Silicon, in building advanced silicon wafer fabrication facilities in Texas and Missouri. U.S. Secretary of Commerce Gina Raimondo emphasized the critical role GlobalWafers plays in bolstering the U.S. semiconductor supply chain.
A non-binding preliminary memorandum of terms (PMT) was signed today under the CHIPS and Science Act, promising direct subsidies of up to $400 million. This funding will support the construction of the first 300mm (12-inch) silicon wafer fab in the United States, located in Sherman, Texas. These 300mm wafers are essential for advanced semiconductor manufacturing.
Additionally, GlobalWafers will expand its 300mm silicon-on-insulator (SOI) wafer production in St. Peters, Missouri. The company also plans to convert some existing epitaxial wafer production lines in Texas to produce 150mm and 200mm silicon carbide (SiC) epitaxial wafers, crucial for high-voltage applications like electric vehicles and clean energy infrastructure.
Secretary Raimondo highlighted that these projects will supply the necessary silicon wafers for advanced chip production in the U.S., significantly strengthening the semiconductor supply chain. The investments are expected to create more than 2,000 jobs, lower production costs, and enhance both the economy and national security.
Currently, five major companies, including GlobalWafers, dominate the silicon wafer market, producing over 80% of the world’s supply, with 90% of production lines located in East Asia. This investment aims to reduce dependency on foreign sources and improve the U.S.’s competitive edge in the global semiconductor market.
The CHIPS and Science Act, signed by President Biden in 2022, seeks to encourage domestic investment in chip manufacturing and R&D, reducing reliance on international suppliers and enhancing U.S. competitiveness against China. Through subsidies and support measures, the Act aims to secure the U.S.’s position in the global semiconductor industry.
