Silicon and Silicon Carbide Giants Announce New Factories with U.S. Subsidies

Global semiconductor wafer leader GlobalWafers and automotive supplier Bosch have unveiled plans to expand their operations with significant funding from the U.S. CHIPS Act. These investments focus on advancing 12-inch silicon wafers and 8-inch silicon carbide (SiC) wafers, critical components for next-generation semiconductors and power electronics.

GlobalWafers: $4.06 Billion for Advanced Silicon Wafers

GlobalWafers received $4.06 billion in subsidies for its operations in Sherman, Texas, and St. Peters, Missouri.

Key Details:

Facilities:

Sherman Facility: The first U.S. plant to mass-produce 12-inch silicon wafers by mid-2025.

St. Peters Facility: Scheduled to produce 12-inch silicon-on-insulator (SOI) wafers starting in 2025.

Funding Benefits:

Additional tax credits of up to 25% under the U.S. Treasury’s advanced manufacturing program.

$6 million allocated to workforce development.

Total Investment: Over $40 billion, aimed at boosting the U.S. semiconductor supply chain.

Bosch: $2.25 Billion for Silicon Carbide Expansion

Bosch plans to transform its Roseville, California facility into a silicon carbide wafer factory, with production slated to begin in 2026.

Key Details:

U.S. Subsidy: $2.25 billion to support an investment of $19 billion.

Focus: Transitioning to 8-inch SiC wafer production, expected to account for over 40% of U.S. SiC manufacturing capacity.

Global Race to Scale SiC Wafers

The demand for SiC technology is surging, driven by applications in electric vehicles (EVs), renewable energy, and industrial equipment. Leading players worldwide are scaling their production capabilities:

Wolfspeed (U.S.):

8-inch SiC wafer utilization at its New York Mohawk Valley facility reached 20% in June 2023.

STMicroelectronics (Europe):

Full-scale 8-inch SiC wafer production expected by 2025, with new production lines under construction.

Infineon (Germany):

8-inch SiC fab in Kulim, Malaysia, operational since 2023; full-scale production anticipated by 2025.

ON Semiconductor (U.S.):

Expanded Korean SiC wafer fab in 2023; transitioning to 8-inch wafers by 2025 with a 10x capacity increase.

Rohm (Japan):

Plans to transition its Fukuoka fab to 8-inch SiC wafers by 2025.

Mitsubishi Electric (Japan):

Accelerating its Kumamoto fab launch to November 2025.

Domestic Chinese Firms:

Silan Microelectronics: First-phase production of its 8-inch SiC project expected by late 2025.

Fangzheng Microelectronics: Projecting 8-inch wafer production line completion by late 2024.

Broader U.S. Semiconductor Investments Under the CHIPS Act

In recent months, the U.S. government has pledged $23 billion across 11 projects to enhance domestic semiconductor production, involving major companies like Micron, Intel, TSMC, and others.

Notable Projects:

Micron:

$61.65 billion for advanced DRAM production in New York and Idaho.

Intel:

$78.6 billion for advanced manufacturing and packaging in Arizona, Ohio, and other states.

TSMC:

$66 billion to accelerate chip production in Arizona.

Entegris:

$77 million to expand semiconductor manufacturing materials in Colorado.

Coherent:

$33 million to establish the world’s first 150mm InP production line in Texas.

Impact and Outlook

The massive investments in silicon and SiC production underline the strategic importance of semiconductors in the global economy. These expansions are set to:

Strengthen U.S. semiconductor supply chain resilience.

Foster innovation in automotive, AI, and renewable energy applications.

Catalyze the transition to 8-inch SiC wafers, addressing growing demands for power-efficient components.

As competition heats up, the synergy between government support and private sector innovation will play a decisive role in shaping the semiconductor landscape.