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3 days ago2 min read

US Finalises US$406 Million Chips Subsidy for Taiwan's GlobalWafers

The U.S. Commerce Department finalises a US$406 million grant for GlobalWafers to boost silicon wafer production in the U.S. GlobalWafers plans to invest nearly US$4 billion in new manufacturing facilities in Texas and Missouri, creating jobs and expanding production. The company aims to localise production but faces challenges due to the need to import raw materials and uncertainties surrounding tariffs.


US Finalizes $406 Million Chips Subsidy for Taiwan's GlobalWafers

This funding aims to significantly boost the production of silicon wafers in the United States. The projects in Texas and Missouri will mark the first high-volume U.S. production of 300-mm wafers for advanced semiconductors and expand the production of silicon-on-insulator wafers, as stated by the Commerce Department.


These wafers are essential components of advanced semiconductors and are part of the Biden administration's strategy to strengthen the domestic chip supply chain. The subsidy is set to support nearly $4 billion in investments by GlobalWafers in both states, leading to the construction of new wafer manufacturing facilities and the creation of 1,700 construction and 880 manufacturing jobs.


GlobalWafers CEO Doris Hsu highlighted the advantages of localising production, especially in the current global chip supply chain landscape facing tariffs. Hsu emphasised the prioritisation of local supply in countries with high demand for silicon wafers, supported by local customers. When asked about potential uncertainties with U.S. CHIPS Act grants under the incoming administration of President-elect Donald Trump, Hsu mentioned the company's readiness to adapt to any new decisions.


Hsu noted that while the company aims to localise production, it still needs to import some raw materials and consumables for its manufacturing sites in the U.S. The uncertainty surrounding Trump's proposed tariffs has led to challenges in providing accurate quotes to customers. GlobalWafers, operating in 18 factories across nine countries, is navigating these complexities as it expands its operations in the U.S.


In 2022, GlobalWafers plans to construct a US$5 billion plant in Texas to produce 300-mm silicon wafers for semiconductors, shifting focus from a previous plan to invest in Germany. Currently, a small group of major companies, including GlobalWafers, dominate the global 300-mm silicon wafer manufacturing market. The majority of silicon wafers are produced in east Asia, with GlobalWafers aiming to enhance its facilities in Texas and Missouri to cater to various chip manufacturing needs.


The Commerce Department is expediting the finalisation of awards under the 2022 $52.7 billion CHIPS and Science Act semiconductor manufacturing and research subsidy program before the upcoming change in administration.

 

  • The U.S. Commerce Department finalises a US$406 million grant for GlobalWafers to boost silicon wafer production in the U.S.

  • GlobalWafers plans to invest nearly US$4 billion in new manufacturing facilities in Texas and Missouri, creating jobs and expanding production.

  • The company aims to localise production but faces challenges due to the need to import raw materials and uncertainties surrounding tariffs.


Source: REUTERS

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