Introduction
Taiwan’s GlobalWafers Co. has finalized an agreement to receive up to US$406 million under the U.S. CHIPS and Science Act, marking a significant step in strengthening U.S. semiconductor manufacturing capabilities. The funding will be directed to two of its subsidiaries, GlobalWafers America, LLC (GWA) and MEMC LLC, to support advanced semiconductor wafer production in Sherman, Texas, and St. Peters, Missouri.
U.S. CHIPS Act Investment to Boost Local Semiconductor Production
The U.S. Department of Commerce has confirmed the disbursement of funds to GlobalWafers’ subsidiaries in line with project milestones. This deal reflects the U.S. government’s commitment to revitalizing its domestic semiconductor industry and reducing dependency on foreign suppliers.
According to the announcement, a significant portion of the funds—US$6 million—will be used to enhance workforce development initiatives at GlobalWafers America (GWA). The remaining funds will support the construction and operation of semiconductor wafer production facilities in Texas and Missouri, aimed at meeting the growing demand for advanced chip manufacturing in the U.S.
Key Aspects of the Deal
| Facility | Location | Focus Area | Key Milestones | Jobs Created |
|---|---|---|---|---|
| GWA Facility | Sherman, Texas | 12-inch silicon wafer production | First half of 2025 | 800 permanent jobs |
| MEMC Facility | St. Peters, Missouri | 12-inch silicon-on-insulator (SOI) wafers | First half of 2025 | 800 permanent jobs |
| Construction Jobs | Both Facilities | Wafer production plants | Ongoing construction | 1,700 jobs |
Building a Domestic Semiconductor Ecosystem
U.S. Secretary of Commerce Gina Raimondo emphasized that the deal secures a nearly US$4 billion investment by GlobalWafers to establish a domestic source of silicon wafers—critical for the U.S. semiconductor supply chain. This aligns with the broader goals of the CHIPS and Science Act, which aims to boost domestic production of semiconductor materials, reduce reliance on overseas suppliers, and create high-quality jobs within the U.S.
Expanding Production Capacity with Cutting-Edge Technology
GlobalWafers is on track to make GWA the first high-volume advanced 12-inch silicon wafer production facility in the U.S., expected to be operational in the first half of 2025. These 12-inch wafers are essential for a wide range of applications, including the production of leading-edge chips and memory chips used in smartphones, computers, and automotive technologies.
MEMC will also be rolling out 12-inch silicon-on-insulator (SOI) wafers, which are commonly used in high-performance applications, including defense, aerospace, and telecommunications. The ramp-up of production at both facilities will play a crucial role in strengthening U.S. capabilities in advanced semiconductor manufacturing.
Creating Jobs and Stimulating Economic Growth
As the facilities in Sherman and St. Peters begin operations, more than 800 permanent jobs will be created at each location. In addition, approximately 1,700 construction jobs have already been generated as part of the plant development process. The U.S. government’s investment is expected to stimulate local economies and provide long-term employment opportunities in the semiconductor sector.
GlobalWafers: A Key Player in Global Semiconductor Manufacturing
GlobalWafers, the third-largest silicon wafer supplier globally, has positioned itself as a crucial player in the semiconductor supply chain. The company is the second Taiwanese semiconductor firm to receive direct funding under the CHIPS Incentive Awards, following Taiwan Semiconductor Manufacturing Company (TSMC), which was awarded up to US$6.6 billion for its U.S. expansion efforts.
Frequently Asked Questions (FAQs)
1. What is the CHIPS and Science Act?
The CHIPS and Science Act is a U.S. government initiative designed to bolster domestic semiconductor manufacturing by providing financial incentives for companies to build and expand semiconductor production facilities in the United States.
2. How will the funding be used by GlobalWafers?
The US$406 million will support the construction of two advanced semiconductor wafer production facilities in Texas and Missouri. Part of the funding will also go toward workforce development at GlobalWafers America.
3. What types of wafers will be produced at these facilities?
The facilities will produce 12-inch silicon wafers, which are used in semiconductor manufacturing, as well as 12-inch silicon-on-insulator (SOI) wafers, commonly used in defense, aerospace, and high-performance computing applications.
4. How many jobs will be created by this project?
Once fully operational, the Sherman, Texas, and St. Peters, Missouri, facilities will create more than 800 permanent jobs each. In addition, approximately 1,700 construction jobs have been created.
Conclusion
The US$406 million in CHIPS Act funding marks a major milestone for GlobalWafers and the U.S. semiconductor industry. With the support of this investment, GlobalWafers is set to establish critical semiconductor wafer production capabilities in the U.S., supporting both national security interests and the future growth of the global tech industry.
