These funds will support projects in Texas and Missouri, establishing the first large-scale U.S. production of 300mm wafers for advanced semiconductor applications and expanding the production of silicon-on-insulator wafers.
Silicon wafers are essential components in advanced semiconductors and are part of the Biden administration's initiative to strengthen the domestic semiconductor supply chain.
This subsidy will facilitate 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 jobs along with 880 manufacturing positions.
The Taiwanese tech manufacturing company, GlobalWafers CEO, Doris Hsu, expressed enthusiasm, stating, "We look forward to innovating with our U.S.-based chip customers for decades to come."
In 2022, GlobalWafers announced plans to invest $5 billion in a Texas facility dedicated to producing 300-mm silicon wafers for semiconductors, shifting focus from a previously proposed investment in Germany.
Currently, five major companies, including GlobalWafers, dominate over 80% of the global market for 300-mm silicon wafer manufacturing, with approximately 90% of silicon wafers produced in East Asia.
GlobalWafers intends to build and expand its facilities in Sherman, Texas, to manufacture wafers for advanced, mature-node, and memory chips, as well as establish a new facility in St. Peters, Missouri, for wafers used in defense and aerospace applications.
The department has been working swiftly to finalize awards under the $52.7 billion CHIPS and Science Act semiconductor manufacturing and research subsidy program before President-elect Donald Trump takes office on January 20.
Recently, Commerce also finalized a $6.165 billion government subsidy for Micron Technology to produce semiconductors in New York and Idaho, along with other significant awards, including $7.86 billion for Intel and $6.6 billion for Taiwan Semiconductor Manufacturing Company's new U.S. unit.