The U.S. Department of Commerce has announced a proposed investment of up to $400 million in direct funding under the CHIPS and Science Act to support GlobalWafers in constructing new wafer manufacturing facilities. This investment is expected to create 1,700 construction jobs and 880 manufacturing jobs, with total capital expenditures projected to be around $4 billion across Texas and Missouri.
Key Points
- Sherman, Texas: GlobalWafers will establish the first 300mm silicon wafer manufacturing facility in the U.S. for advanced chips, crucial for leading-edge, mature-node, and memory chips production.
- St. Peters, Missouri: A new facility will produce 300mm silicon-on-insulator (SOI) wafers, enhancing performance in harsh environments and serving the defense and aerospace sectors.
- Sherman, Texas Expansion: Conversion of part of the existing silicon epitaxy wafer manufacturing facility to produce 150mm and 200mm silicon carbide (SiC) epitaxy wafers, essential for high-voltage applications like electric vehicles and clean energy infrastructure.
The funding will also support the following workforce development initiatives:
Texas: GlobalWafers is involved with the Southern Methodist University-led Texoma Tech Hub and the North Texas Semiconductor Workforce Development Consortium. They are also partnering with local schools to establish an electronics lab for targeted training. Missouri: MEMC is developing an apprenticeship program with the National Institute for Industry and Career Advancement (NIICA) and collaborating with St. Charles Community College on the MegaTech program for dual-enrolled high school students.
Overview of GlobalWafers
GlobalWafers is a Taiwan-based company that specializes in the production of silicon wafers, a critical component in the manufacturing of semiconductors and solar panels. Headquartered in Tainan, Taiwan, the company was founded in 1991 and has since grown to become one of the largest silicon wafer manufacturers in the world. GlobalWafers’ major products include high-purity silicon wafers, epitaxial wafers, and solar wafers, which are used in a wide range of applications, including electronics, automotive, and renewable energy. The company operates a global network of manufacturing facilities, including those in Taiwan, Japan, South Korea, and the United States. In terms of financial performance, GlobalWafers has reported consistent growth in revenue and profitability in recent years, with revenue reaching NT$44.3 billion (approximately USD $1.5 billion) in 2020 and net income reaching NT$10.3 billion (approximately USD $350 million).
Update on CHIPs for America
With this funding, CHIPS for America has announced up to $30.1 billion in proposed funding across thirteen preliminary memoranda of terms aimed at revitalizing the U.S. semiconductor industry. These investments are expected to unlock more than $300 billion in public and private investment by the end of the decade, marking the largest investment in new production in the history of the U.S. semiconductor sector.
Earlier this year, Secretary Raimondo projected that the U.S. will produce 20% of the world’s leading-edge chips by the end of the decade, reducing vulnerability to supply chain disruptions. The Semiconductor Industry Association reported that America is on track to triple its domestic semiconductor manufacturing capacity from 2022 to 2032, reflecting the impact of the CHIPS and Science Act.
Key milestones:
- Four of the world’s five leading-edge semiconductor companies are expanding in the U.S., a unique position globally.
- The Department of Commerce has received over 670 statements of interest and more than 230 pre-applications and full applications for NOFO 1, along with 160 small supplier concept plans for NOFO
- Ongoing rigorous evaluation of applications aims to advance U.S. national and economic security, attract private capital, and deliver economic benefits.
- The recent announcement with GlobalWafers marks the thirteenth PMT announcement under the CHIPS and Science Act, with more expected throughout 2024.
These efforts underscore America’s commitment to bolstering its semiconductor industry and securing its innovation capacity against future disruptions.