U.S. Commerce Department Grants $406 Million to GlobalWafers

By David Shepardson

WASHINGTON (Reuters) – The U.S. Commerce Department announced on Tuesday the finalization of $406 million in government grants to Taiwan's GlobalWafers, aimed at significantly increasing silicon wafer production in the United States.

The funding will support projects in Texas and Missouri, establishing the first high-volume U.S. production of 300-mm wafers for advanced semiconductors and expanding silicon-on-insulator wafer production, according to the Commerce Department.

These wafers are essential components of advanced semiconductors and are part of the Biden administration's strategy to enhance the domestic chips supply chain.

The subsidy will facilitate nearly $4 billion in investments by GlobalWafers in both states to build new wafer manufacturing facilities, creating 1,700 construction jobs and 880 manufacturing jobs.

GlobalWafers CEO Doris Hsu stated, "We look forward to innovating with our U.S.-based chip customers for decades to come."

In 2022, GlobalWafers announced plans for a $5 billion facility in Texas for 300-mm silicon wafers, shifting from a previously planned investment in Germany.

Currently, five major companies, including GlobalWafers, dominate over 80% of the global 300-mm silicon wafer manufacturing market, with about 90% of production occurring in East Asia.

GlobalWafers intends to construct and expand facilities in Sherman, Texas, to manufacture wafers for leading-edge, mature-node, and memory chips, along with a new facility in St. Peters, Missouri, for wafers designed for defense and aerospace chips.

The Commerce Department has sought to finalize awards under the 2022 $52.7 billion CHIPS and Science Act semiconductor manufacturing and research subsidy program ahead of President-elect Donald Trump taking office on January 20.

Last week, the department finalized a $6.165 billion government subsidy for Micron Technology to produce semiconductors in New York and Idaho. Other recent awards include a $7.86 billion subsidy for Intel, $6.6 billion for Taiwan Semiconductor Manufacturing Co.'s new U.S. unit, and $1.5 billion for GlobalFoundries.