The latest company to receive direct funding from the U.S. Department of Commerce’s CHIPS and Science Act is Taiwan’s GlobalWafers, which is a maker of 300 mm wafers for semiconductors.
Under the agreement with the DoC, GlobalWafers will use the funding to expand production of silicon-on-insulator wafers and support the construction of new wafer manufacturing facilities. This investment would support projects in Missouri and Texas from GlobalWafers with total capital expenditures of about $4 billion across both states.
Additionally, the deal will create 1,700 construction jobs and 880 manufacturing jobs.
GlobalWafers is the 13th company to receive CHIPS Act funding. Other companies that have received funding are a mix of semiconductors foundries — like TSMC, Samsung, Rogue Valley Microdevices, GlobalFoundries and Intel — and chipmakers like Micron Technology, Rocket Lab, Entegris, Microchip Technology and BAE Systems.
“The important incentives announced today will help GlobalWafers bring more wafer production, jobs, and innovation to U.S. shores,” said John Neuffer, president and CEO of the Semiconductor Industry Association (SIA). “The vast majority of silicon wafers are manufactured in East Asia, so expanding U.S. production in this sector will strengthen our supply chains.”
Expanded facilities
The deal will include the establishment of the first 300 mm silicon wafer manufacturing facility for semiconductors in the U.S. The direct funding will also be used for the creation of a new GlobalWafers’ facility to produce 300 mm silicon-on-insulator (SOI) wafers.
These wafers are used for harsh environmental applications such as those in the defense and aerospace end markets.
GlobalWafers will also convert a portion of its existing silicon epitaxy wafer manufacturing facility in Sherman, Texas, to silicon carbide (SiC) 150 mm and 200 mm epitaxy wafer manufacturing. SiC is increasingly being used for applications where power needs require more efficiency and density like electric vehicles (EVs) and renewable clean energy sources.
“By investing in leading-edge semiconductor manufacturing, we are helping secure this vulnerable supply chain, boosting our national security and global competitiveness, and creating new jobs for Texans,” said John Cornyn, U.S. Senator in Texas. “The silicon wafer production capabilities these resources will enable at GlobalWafers in Sherman will help the U.S. reclaim its leadership role in the critically important semiconductor industry, and I look forward to seeing more Texas-led advancements in the years to come.”
Why it matters
Silicon wafers are used in semiconductor supply chain as the foundational input used in all chips. Five companies — including GlobalWafers — currently hold more than 80% of the global 300 mm silicon wafer manufacturing market. Of this, about 90% of silicon wafers are sourced from Asia.
The investment of GlobalWafers in America would help secure wafers for the U.S. semiconductor supply chain by bring onshore critical semiconductor wafer production and shore up national security in case of another pandemic or geopolitical event.
The idea is if a future pandemic occurs or a geopolitical event happens that impacts the semiconductor supply chain, regionally the U.S. will be more secure and resilient. The CHIPS Act was created to invest in both domestic and foreign companies to build new chip fabs or expand existing fabs on U.S. soil.
So far, the CHIPS Act has doled out about $34 billion to companies and about $5 billion is left, which is expected to be given to smaller companies that are working on technologies like Rocket Lab and Polar Semiconductor, which was given $120 million to transform the company into a U.S.-based chip foundry.