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The US Commerce Department announced on July 17 that it planned to award a $400 million grant to Taiwan's GlobalWafers (6488.TWO) for projects in Texas and Missouri. These projects will establish the first US production sites for 300-mm wafers for advanced semiconductors and expand the production of silicon-on-insulator wafers.

This investment aligns with the Biden administration's efforts to strengthen the US semiconductor supply chain, which is heavily reliant on East Asia for silicon wafers. Currently, five major companies, including GlobalWafers, control over 80% of the global 300mm silicon wafer manufacturing market, and approximately 90% of silicon wafers are produced in East Asia.

The new grant will support the company's ongoing facilities at two sites:

Sherman, Texas: GlobalWafers will establish the first 300mm silicon wafer manufacturing facility for advanced chips in the US. 300mm silicon wafers are a key input used by foundries and integrated device manufacturers to produce leading-edge, mature-node, and memory chips.

St. Peters, Missouri: This will be a new facility dedicated to producing 300mm silicon-on-insulator wafers. SOI wafers enable significantly improved performance in harsh environments and are commonly used in defense and aerospace applications.

Additionally, GlobalWafers plans to convert a portion of its existing silicon epitaxy wafer manufacturing facility in Sherman, Texas, to produce silicon carbide epitaxy wafers, specifically 150mm and 200mm SiC epitaxy wafers. SiC epitaxy wafers are a critical component for high-voltage applications, notably including electric vehicles and clean energy infrastructure.

GlobalWafers' expansion will create 1,700 construction jobs and 880 manufacturing jobs, significantly contributing to the US economy. The grant is part of the $52.7 billion Chips and Science Act passed by Congress in 2022 to revitalize the domestic semiconductor industry. This latest award, along with 12 other stotaling $30.1 billion, is still subject to further approval processes.

Editor：Lulu

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