[News] Wafer Fab Secures Subsidies for Third-Gen Semiconductors

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Driven by downstream applications such as new energy, 5G, and photovoltaics, the third-generation semiconductor industry, represented by silicon carbide (SiC) and gallium nitride (GaN), is rapidly developing. Major semiconductor manufacturers are actively expanding their presence in this sector. At the same time, countries worldwide, including the United States, are increasing subsidies to propel the third-generation semiconductor industry forward.

Bosch to Receive $225 Million Chip Subsidy for Silicon Carbide Production

Recently, the U.S. Department of Commerce announced a preliminary agreement with German automotive supplier Bosch. The U.S. plans to provide $225 million in direct funding and $350 million in loans for Bosch’s fab renovation project in California. This funding will support Bosch’s efforts to produce silicon carbide (SiC) power semiconductors in the state.

In 2023, Bosch acquired TSI Semiconductors, gaining ownership of an 8-inch fab located in Roseville, California. Bosch plans to invest $1.9 billion to upgrade this facility into a silicon carbide production plant, aiming for production to commence in 2026.

The U.S. Department of Commerce stated that once fully operational, Bosch’s California semiconductor fab is expected to account for over 40% of the nation’s silicon carbide chip manufacturing capacity.

Bosch emphasized that silicon carbide technology enables greater driving range and more efficient charging for electric and plug-in hybrid vehicles, thereby providing consumers with more affordable electric vehicle options.

In addition to direct funding and loans, Bosch also plans to apply for the Advanced Manufacturing Investment Credit from the U.S. Treasury Department, equivalent to 25% of its qualifying capital expenditures.

GlobalFoundries Secures Additional U.S. Subsidies for GaN Development

In early December, GlobalFoundries (GF) announced on its official website that it had received $9.5 million in funding from the U.S. government. The subsidy is aimed at advancing silicon-based gallium nitride (GaN) semiconductor production at GF’s facility in Essex Junction, Vermont.

With this funding, GF will further enhance its GaN IP portfolio and add new tools, equipment, and prototype development capabilities for reliability testing. This will bring GF closer to full-scale 8-inch GaN chip manufacturing in Vermont.

According to reports, GF has received significant funding from the U.S. government since 2020 to support research, development, and large-scale manufacturing of GaN chips. In October 2023, GF announced it had secured $35 million in federal funding from the U.S. government.

In terms of business developments, GF acquired the GaN power product portfolio of Tagore Technology in July this year and established a Power Center in Kolkata, India. This center works closely with and supports GF’s Vermont fab, facilitating GF’s advancements in GaN chip research, development, and mass production.

(Photo credit: GlobalFoundries)