The U.S. plans to award GlobalWafers up to $400 million to increase semiconductor wafer production in the country.
Takeaway Points
- The U.S. plans to award GlobalWafers up to $400 million, to increase semiconductor wafer production in the country.
- This investment would support the construction of new wafer manufacturing facilities and create 1,700 construction jobs and 880 manufacturing jobs.
- There are five leading companies, including GlobalWafers, that currently hold over 80% of the global 300mm silicon wafer manufacturing market.
US to award GlobalWafers up to $400 million
The U.S. Department of Commerce said on Wednesday that it has signed a non-binding preliminary memorandum of terms (PMT) with GlobalWafers America, LLC, and MEMC LLC, subsidiaries of GlobalWafers Co., Ltd., to provide up to $400 million to increase semiconductor wafer production and advance U.S. technology leadership.
This investment would support the construction of new wafer manufacturing facilities and will create 1,700 construction jobs and 880 manufacturing jobs, the commerce department said.
U.S. Secretary of Commerce Gina Raimondo said that through the proposed investment, the Biden-Harris Administration helps to create over 2,000 jobs across Texas and Missouri, which helps to reduce costs and improve economic and national security for Americans.
“President Biden is restoring our leadership in the entire semiconductor supply chain – from materials to manufacturing, to R&D. With this proposed investment, GlobalWafers will play a crucial role in bolstering America’s semiconductor supply chain by providing a domestic source of silicon wafers that are the backbone of advanced chips. As a result of this proposed investment, the Biden-Harris Administration is helping to secure our supply chains, which will create over 2,000 jobs across Texas and Missouri and ultimately lowering costs and improving economic and national security for Americans,” Gina said.
Arati Prabhakar, Assistant to the President for Science and Technology and Director of the White House Office of Science and Technology Policy, said “President Biden is taking historic action to bring semiconductor manufacturing back in the United States. The semiconductor wafers that will come from today’s announcement will be the foundation for the complex chips we need to compete in the global economy. We’re bolstering our national security, advancing our clean energy transition, and creating good jobs that support families in Texas and Missouri.”
There are five leading companies, including GlobalWafers, that currently hold over 80% of the global 300mm silicon wafer manufacturing market, and approximately 90% of silicon wafers are sourced from East Asia today, according to the report.
GlobalWafers plans to build and expand facilities in Sherman, Texas, to start the first 300mm silicon wafer manufacturing facility for advanced chips in the United States, and St. Peters, Missouri, to start a new facility to produce 300mm silicon-on-insulator (“SOI”) wafers, the report stated.
The commerce department explained that, as part of the PMT, GlobalWafers plans to convert a portion of its existing silicon epitaxy wafer manufacturing facility in Sherman, Texas, to silicon carbide (“SiC”) epitaxy wafer manufacturing, producing 150mm and 200mm SiC epitaxy wafers.
The commitment of up to $400 million by the US government to GlobalWafers represents a significant stride towards enhancing semiconductor wafer production domestically. This initiative not only bolsters the nation’s semiconductor infrastructure but also fortifies its position in the global semiconductor market.
