The US Commerce Department (USCD) has finalised a $406m subsidy for Taiwan’s GlobalWafers, a silicon wafer manufacturer, under the US Chips and Science Act.
This agreement, which builds on a preliminary accord from July 2024, supports GlobalWafers’ subsidiaries, GlobalWafers America (GWA) and MEMC, contingent on achieving specific milestones.
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According to the commerce department, the funds will facilitate the construction of wafer manufacturing facilities in Texas and Missouri.
These projects are anticipated to create around 1,700 construction jobs and 880 manufacturing jobs in both states.
The GWA facility in Texas will be the first advanced high-volume 300mm silicon wafer facility in the US, producing wafers for advanced devices.
In Missouri, the MEMC facility will focus on producing 300mm silicon-on-insulator (SOI) wafers, essential for defence and aerospace sectors.
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By GlobalDataThese investments will fund projects with a combined capital expenditure of about $4bn in Texas and Missouri, bolstering the domestic semiconductor supply chain, the US government said.
US Secretary of Commerce Gina Raimondo said: “The semiconductor wafers that will be produced here in the US because of this investment in GlobalWafers are the foundation of the advanced chips that will help us out-innovate and out-compete the rest of the world.”
Additionally, GlobalWafers will convert part of its existing silicon epitaxy wafer manufacturing facility in Sherman, Texas, to silicon carbide epitaxy wafer manufacturing.
Silicon carbide epitaxy wafers are vital for high-voltage applications, including electric vehicles and clean energy infrastructure.
GlobalWafers chairperson and CEO Doris Hsu said: “GlobalWafers is proud to be a CHIPS for America participant and the only global producer now building advanced wafer facilities in the US.
“Through our new investments announced today, we look forward to innovating with our U.S. based chip customers for decades to come.”
Earlier in December 2024, the US Commerce Department also finalised a $6.2bn subsidy for Micron Technology to enhance semiconductor production in New York and Idaho.
This funding supports with Micron’s plans to invest $100bn in New York and $25bn in Idaho, with $4.6bn allocated for New York and $1.5bn for Idaho.
