Introduction
GlobalWafers America, LLC and MEMC LLC, subsidiaries of Taiwan-based GlobalWafers Co., Ltd., are set to receive up to $4 Billion Investment under the CHIPS and Science Act. The funding agreement, announced by the Biden-Harris Administration, aims to bolster domestic semiconductor wafer production and reduce reliance on Asian suppliers.
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Key Takeaways
Funding Allocation: $4 Billion Investment to support U.S. wafer manufacturing.
Job Creation: 1,700 construction and 880 manufacturing jobs across two states.
Strategic Locations: New facilities planned for Sherman, Texas, and St. Peters, Missouri.
Economic Impact: Total investment estimated at $4 billion.
Workforce Training: Partnerships with local educational institutions for semiconductor technician programs.
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Strengthening the U.S. Semiconductor Supply Chain
The U.S. Department of Commerce announced the Preliminary Memorandum of Terms (PMT) with GlobalWafers on July 17, 2024.
The agreement outlines a $4 Billion Investment funding package aimed at establishing advanced silicon wafer manufacturing facilities in the U.S.
Gina Raimondo, U.S. Secretary of Commerce, emphasized that the funding will help secure a domestic source of silicon wafers.
“This investment strengthens our semiconductor supply chain, supports American jobs, and enhances our economic and national security,” she said.
Facility Expansion: Sherman, Texas
GlobalWafers plans to build the first 300mm silicon wafer manufacturing plant in the U.S. in Sherman, Texas.
The facility will produce advanced silicon wafers for next-generation chips used in AI, 5G, and other cutting-edge applications.
Additionally, the company will convert part of its existing silicon epitaxy wafer plant to manufacture 150mm and 200mm Silicon Carbide (SiC) epitaxy wafers.
These SiC wafers are essential for high-voltage applications like electric vehicles and renewable energy systems.
Texas Facility Overview:
| Location | Focus | Jobs Created | Investment |
|---|---|---|---|
| Sherman, Texas | 300mm silicon wafers, 150/200mm SiC wafers | 1,700 (construction) | $4 billion |
New SOI Wafer Facility: St. Peters, Missouri
In St. Peters, Missouri, MEMC will build a facility to produce 300mm Silicon-on-Insulator (SOI) wafers. SOI wafers deliver superior performance in extreme environments and are vital for defense and aerospace applications.
The Missouri plant will generate 880 manufacturing jobs, aligning with the broader CHIPS Act goal of advancing U.S. semiconductor capabilities.
Missouri Facility Overview:
| Location | Focus | Jobs Created | Investment |
|---|---|---|---|
| St. Peters, Missouri | 300mm SOI wafers | 880 (manufacturing) | – |
Addressing Workforce Development
GlobalWafers is also investing in workforce training to meet the rising demand for skilled semiconductor technicians.
In Texas, the company is collaborating with Southern Methodist University, the University of Texas Dallas, Sherman High School, Denison High School, and Grayson College.
The partnership aims to create electronics labs and provide training for technician certifications.
In Missouri, MEMC is partnering with the National Institute for Industry and Career Advancement (NIICA) and local high schools to develop apprenticeship programs for maintenance technicians.
The MegaTech program at St. Charles Community College will further expand semiconductor-related training opportunities.
GlobalWafers’ Market Position
GlobalWafers Co., Ltd., headquartered in Taiwan, is one of the world’s top five silicon wafer manufacturers. These companies collectively control over 80% of the global 300mm silicon wafer market.
Nearly 90% of the world’s silicon wafers currently come from East Asia, making the U.S. heavily reliant on foreign suppliers.
The CHIPS Act funding aims to reduce this dependence by establishing domestic manufacturing facilities for key semiconductor components.
Conclusion
The $400 million CHIPS Act funding for GlobalWafers represents a strategic move to enhance the U.S. semiconductor supply chain.
By investing in advanced wafer manufacturing facilities in Texas and Missouri, the U.S. seeks to reduce its dependence on Asian suppliers, strengthen national security, and generate thousands of high-tech jobs.
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