GlobalWafers to Build Advanced Silicon Wafer Factories in Texas and Missouri with $400M U.S. Subsidy
Taiwan's silicon wafer giant GlobalWafers announced on July 17th that, based on the Chips and Science Act, its subsidiaries GlobalWafers America (GWA) and MEMC LLC have signed a non-binding preliminary memorandum of terms (PMT) with the U.S. Department of Commerce. This agreement will provide up to $400 million in direct subsidies for the construction of advanced silicon wafer fabs in Sherman, Texas, and St. Peters, Missouri.
Taiwan's silicon wafer giant GlobalWafers announced on July 17th that, based on the Chips and Science Act, its subsidiaries GlobalWafers America (GWA) and MEMC LLC have signed a non-binding preliminary memorandum of terms (PMT) with the U.S. Department of Commerce. This agreement will provide up to $400 million in direct subsidies for the construction of advanced silicon wafer fabs in Sherman, Texas, and St. Peters, Missouri.
According to the agreement, GlobalWafers will build new wafer manufacturing plants in Texas and Missouri to produce 300mm silicon wafers. The construction of these plants is expected to cost approximately $4 billion, with $400 million in funding provided by the U.S. government. The specifics include:
- Sherman, Texas: Establishing the first 300mm advanced chip silicon wafer manufacturing plant in the U.S. This type of wafer is a key material for manufacturing cutting-edge, mature node, and memory chips.
- St. Peters, Missouri: Establishing a new factory to produce 300mm Silicon-On-Insulator (SOI) wafers, which significantly improve performance under harsh conditions and are commonly used in defense and aerospace applications.
Additionally, GlobalWafers plans to convert part of its existing silicon epitaxial wafer manufacturing plant in Sherman, Texas, into a silicon carbide (SiC) epitaxial wafer manufacturing plant, producing 150mm and 200mm SiC epitaxial wafers. SiC epitaxial wafers are key components for high-voltage applications, especially in the fields of electric vehicles and clean energy infrastructure.
U.S. Secretary of Commerce Gina Raimondo said, "GlobalWafers will play a key role in strengthening the U.S. semiconductor supply chain by providing domestic sources of silicon wafers, which are the backbone of advanced chips."
GlobalWafers' Chairman and CEO, Hui Hsin-Lan, expressed gratitude for the support from the U.S. government. In a statement, she said, "GlobalWafers is delighted to play a key role in the U.S. semiconductor supply chain."
GlobalWafers America (GWA) General Manager Mark England said, "With the support of the Biden administration, GlobalWafers will bring advanced 12-inch silicon wafer technology to the U.S., filling a critical gap in the U.S. semiconductor supply chain. We will fully commit to the U.S. market and play a decisive role in the revival of the U.S. semiconductor industry."
GlobalWafers noted that the investment in building a 12-inch silicon wafer fab and research and development center in Sherman, Texas, will create 1,200 construction-related jobs and 750 high-paying manufacturing jobs, including production workers, technicians, and engineers, expected to be realized by 2026.
Furthermore, GlobalWafers will invest in expanding the 12-inch Silicon-On-Insulator (SOI) wafer production base in St. Peters, Missouri, expected to create 500 construction-related jobs and 130 high-paying manufacturing jobs.
GlobalWafers stated that, in addition to the up to $400 million in subsidies, the company also plans to apply for up to 25% Advanced Manufacturing Investment Tax Credit (AMIC) from the U.S. Treasury for GWA and MEMC LLC for eligible expenditures.
After completing the U.S. expansion plan, GlobalWafers will have four plants in the U.S.; two in Texas and two in Missouri.
