In a significant move to bolster the domestic semiconductor industry, the U.S. Commerce Department has approved a $406 million grant for Taiwan’s GlobalWafers. This funding is aimed at enhancing silicon wafer production within the United States.
What Happened: The grant will facilitate the establishment of the first high-volume U.S. production of 300-mm wafers for advanced semiconductors and expand silicon-on-insulator wafer production. This initiative aligns with the Biden administration’s strategy to strengthen the domestic chip supply chain, Reuters reported on Tuesday.
The financial support will back nearly $4 billion in investments by GlobalWafers in Texas and Missouri, creating 1,700 construction and 880 manufacturing jobs.
GlobalWafers CEO Doris Hsu expressed optimism, stating, “We look forward to innovating with our U.S.-based chip customers for decades to come.”
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Previously, GlobalWafers had announced plans in 2022 to develop a $5 billion plant in Texas for 300-mm silicon wafers, shifting from an earlier plan to invest in Germany. The company intends to build and expand facilities in Sherman, Texas, and St. Peters, Missouri, for various semiconductor applications.
The Commerce Department is finalizing awards under the 2022 CHIPS and Science Act before President-elect Donald Trump takes office on Jan. 20. Recent awards include $6.165 billion for Micron Technology MU and $7.86 billion for Intel INTC.
Why It Matters: The approval of this grant is part of a broader effort to revitalize the U.S. semiconductor industry. The CHIPS and Science Act has been pivotal in attracting significant investments from global semiconductor giants, including Taiwan Semiconductor Manufacturing Co. TSM and Samsung Electronics. However, the potential return of former President Donald Trump could impact these investment strategies.
In November 2024, the U.S. agreed to provide $6.6 billion in funding to Taiwan Semiconductor to build advanced chip facilities. This move aims to enhance domestic production and reduce reliance on foreign suppliers, strengthening national security. The investment is expected to attract $65 billion in private capital for three state-of-the-art plants in Arizona.
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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
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