[News] GlobalWafers Receives USD 400 Million Subsidy from CHIPS Act to Establish New Plant in the US

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On July 17th, silicon wafer giant GlobalWafers announced that it is setting up a research and development center in Sherman, Texas, and constructing a 12-inch silicon wafer production line in St. Peters, Missouri. This move is expected to strengthen its US semiconductor supply chain. It is worth noting that the company has signed a preliminary memorandum of understanding with the US Department of Commerce and will receive a USD 400 million subsidy under the CHIPS Act.

US Secretary of Commerce Gina Raimondo noted that the US government is revitalizing the leadership position of the US semiconductor supply chain, encompassing materials, manufacturing, and R&D. GlobalWafers’ investment will enhance the US’s role in the semiconductor supply chain, provide locally sourced silicon wafers needed for advanced processes, and bolster the security of the supply chain.

GlobalWafers stated that its subsidiaries, GlobalWafers America (GWA) and MEMC, have signed a non-binding preliminary memorandum of understanding with the US Department of Commerce. Under the US CHIPS and Science Act, they will receive a USD 400 million subsidy, which is expected to be used for the construction costs of the Texas and St. Peters plants.

Upon completion, its production base in Sherman, Texas, will be the first advanced silicon wafer plant in the US with an integrated process in over 20 years.

At the Sherman, Texas production base, the initial phase of construction will create 1,200 jobs. Additionally, there will be 750 high-paying positions for production operators, technicians, and engineers in the future, with mass production expected to begin in 2026.

Once the St. Peters, Missouri plant is completed, it will be the only advanced 12-inch SOI  wafer production base in the US. It is expected to create 500 construction jobs and 130 high-paying positions.

Among the top 5 companies globally controlling over 80% of the 12-inch silicon wafer market, including GlobalWafers, 90% of these wafers are currently produced in East Asia. As per the plan, GlobalWafers’ plant in Sherman, Texas, will manufacture wafers for advanced, mature, and memory chips, while the St. Peters, Missouri plant will focus on wafers for defense and aerospace applications.

Read more

• [News] Announcement on Additional Subsidies for Chip Act Expected This Week; Intel Could Receive Billions
• [News] US Allocates USD 39 Billion Subsidy to Semiconductor Industry for Establishing Plants

(Photo credit: GlobalWafers)