- The US will grant $400 million to GlobalWafers to boost domestic production of advanced 300-mm silicon wafers.
- GlobalWafers’ $4 billion investment will create 1,700 construction and 880 manufacturing jobs by developing new facilities in Texas and Missouri.
OUR TAKE
By boosting domestic production of 300-mm silicon wafers, the US reduces its dependence on East Asia, enhancing supply chain security for critical technology components. Moreover, GlobalWafers’ $4 billion investment will create significant employment opportunities, contributing to local economies in Texas and Missouri and fostering innovation in the semiconductor industry.
–Jennifer Yu, BTW media reporter
What happened
The US Commerce Department will grant Taiwan’s GlobalWafers up to $400 million to boost silicon wafer production in Texas and Missouri. This aims to establish the first US production of 300-mm wafers for advanced semiconductors and expand silicon on insulator wafer production.
GlobalWafers’ $4 billion investment will create 1,700 construction and 880 manufacturing jobs. This initiative is part of the Biden administration’s strategy to strengthen the semiconductor supply chain.
The subsidy supports new facilities in Sherman, Texas, and St Peters, Missouri. It converts part of an existing Texas facility to produce silicon carbide epitaxy wafers for electric vehicles and clean energy.
This funding is part of the 2022 Chips and Science Act, which aims to boost US semiconductor production with $52.7 billion in subsidies. The grant is among 12 others totalling up to $30.1 billion, pending finalisation after a Commerce Department review.
Also read: TSMC forecasts 34% revenue jump soaring to 23.2B in Q3
Also read: TSMC Q2 profit soars 30% on AI demand
Why it’s important
The production of advanced 300-mm silicon wafers in the US supports the development of cutting-edge semiconductor technologies, which are essential for various industries including electronics, automotive, and defence. Also, the investment in silicon carbide epitaxy wafers supports the electric vehicle and clean energy sectors, contributing to environmental sustainability efforts.
Reducing reliance on East Asian suppliers mitigates risks associated with geopolitical tensions and trade disruptions, ensuring a stable supply of semiconductors for the US.
Furthermore, the investment aligns with the 2022 Chips and Science Act, boosting US semiconductor research and development, and diversifying production locations to strengthen supply chain resilience against disruptions.
