The U.S. Commerce Department announced plans to award Taiwan's GlobalWafers up to $400 million in government grants to significantly increase the production of silicon wafers in the United States. The funds will support projects in Texas and Missouri, aiming to establish the first U.S. production of 300-mm wafers for advanced semiconductors and expand production of silicon-on-insulator wafers.
This initiative is part of the Biden administration's strategy to bolster the semiconductor supply chain in the U.S. by reducing dependence on foreign sources. The planned subsidy will support GlobalWafers' $4 billion investment in constructing new wafer manufacturing facilities, creating 1,700 construction jobs and 880 manufacturing jobs.
Commerce Secretary Gina Raimondo emphasized the importance of GlobalWafers' role in strengthening the U.S. semiconductor supply chain by providing a domestic source of silicon wafers, which are essential for advanced chips. GlobalWafers Chairwoman and CEO Doris Hsu expressed gratitude for the U.S. government's support, highlighting the company's pivotal position in the U.S. semiconductor supply chain.
Currently, GlobalWafers, along with four other major companies, controls over 80% of the global 300mm silicon wafer manufacturing market, with about 90% of silicon wafers produced in East Asia. The subsidy will facilitate the construction and expansion of facilities in Sherman, Texas, for wafers used in leading-edge, mature-node, and memory chips, and in St. Peters, Missouri, for wafers used in defense and aerospace chips.