The U.S. Commerce Department has finalized a $406 million subsidy for Taiwan’s GlobalWafers, aiming to boost domestic semiconductor production. The funding, announced Tuesday, will support projects in Texas and Missouri to establish the first high-volume U.S. production of 300-mm silicon wafers for advanced semiconductors and expand production of silicon-on-insulator wafers. These wafers are critical for advanced chipmaking, and the initiative aligns with the Biden administration’s push to strengthen the domestic chips supply chain.
GlobalWafers, in response, plans nearly $4 billion in investments for new manufacturing facilities in Sherman, Texas, and St. Peters, Missouri. The projects are expected to generate 1,700 construction jobs and 880 manufacturing roles. The Texas facility will produce wafers for leading-edge, mature-node, and memory chips, while the Missouri plant will focus on wafers for defense and aerospace applications.
GlobalWafers CEO Doris Hsu emphasized the importance of localization in the face of global supply chain challenges, including tariffs. Speaking on a conference call from Taiwan, Hsu noted that local production can gain preferential treatment from domestic customers. However, she acknowledged the company’s reliance on imports for some raw materials and consumables for its U.S. facilities, a factor compounded by tariff uncertainties.
The subsidy is part of the $52.7 billion CHIPS and Science Act, signed into law in 2022, designed to revitalize U.S. semiconductor manufacturing and research. The Commerce Department is working to finalize awards under this program ahead of President-elect Donald Trump’s inauguration on January 20. Since the CHIPS Act originated during Trump’s first term, Hsu expressed confidence in its continuation but remained cautious about potential policy changes.
GlobalWafers, one of five companies controlling over 80% of the global 300-mm silicon wafer market, has previously shifted investments to prioritize U.S. production. In 2022, the company announced plans for a $5 billion plant in Texas, abandoning a proposed project in Germany. The Missouri expansion will bolster the U.S. defense and aerospace industries’ supply chain.
Currently, 90% of silicon wafers are produced in East Asia, with GlobalWafers operating 18 factories across nine countries. The company’s decision to expand in the U.S. underscores a strategic pivot to diversify global semiconductor manufacturing capabilities.
Author’s Opinion.
The $406 million subsidy for GlobalWafers highlights a pivotal moment for the U.S. semiconductor industry, signaling a strong commitment to reducing dependence on East Asian supply chains. While this investment bolsters domestic production and job creation, lingering uncertainties, such as tariff impacts and reliance on imported materials, underscore the challenges of reshaping a globalized industry. Achieving true self-sufficiency will require consistent policy support and innovative solutions to address these gaps.
