The U.S. Commerce Department announced on Wednesday its plan to award Taiwan’s GlobalWafers up to $400 million in government grants to significantly boost silicon wafer production. These funds will support projects in Texas and Missouri, establishing the first U.S. production of 300-mm wafers for advanced semiconductors and expanding silicon-on-insulator wafer production.
These wafers are essential for advanced semiconductors and are part of the Biden administration’s initiative to enhance the chips supply chain. The subsidy will back $4 billion in planned investments by GlobalWafers in both states, creating 1,700 construction jobs and 880 manufacturing jobs.
“GlobalWafers will play a crucial role in bolstering America’s semiconductor supply chain by providing a domestic source of silicon wafers that are the backbone of advanced chips,” said Commerce Secretary Gina Raimondo. GlobalWafers Chairwoman and CEO Doris Hsu expressed gratitude for the U.S. government support, stating, “GlobalWafers is pleased to be a key node in the U.S. semiconductor supply chain.”
Currently, five major companies, including GlobalWafers, control over 80% of the global 300-mm silicon wafer manufacturing market, with about 90% of silicon wafers produced in East Asia. Under the planned subsidy, GlobalWafers will build and expand facilities in Sherman, Texas, to produce wafers for leading-edge, mature-node, and memory chips. Additionally, a new facility in St. Peters, Missouri, will produce wafers for defense and aerospace chips.
GlobalWafers also plans to convert part of its existing silicon epitaxy wafer manufacturing facility in Texas to produce silicon carbide epitaxy wafers, crucial for electric vehicles and clean energy infrastructure. In 2022, GlobalWafers announced a $5 billion plant in Texas for 300-mm silicon wafers, shifting from a defunct plan to invest in Germany due to geopolitical concerns and to address U.S. semiconductor supply chain resiliency issues.
Congress approved the Chips and Science Act in 2022, providing $52.7 billion for domestic semiconductor output research and manufacturing subsidies. The latest award, part of a total of up to $30.1 billion in announced subsidies, is still pending finalization as the Commerce Department conducts due diligence.
