On July 17, the Biden-Harris Administration announced a non-binding Preliminary Memorandum of Terms (PMT) between the US Department of Commerce and GlobalWafers America, LLC and MEMC LLC, subsidiaries of GlobalWafers Co., Ltd, a Taiwan-based wafer manufacturer.
This agreement proposes up to US$400 million in direct funding under the CHIPS and Science Act to enhance domestic semiconductor wafer production and advance US technology leadership.
The proposed CHIPS investment will support the construction of new wafer manufacturing facilities, creating 1,700 construction jobs and 880 manufacturing jobs, with total capital expenditures reaching approximately US$4 billion across Texas and Missouri.
US Secretary of Commerce Gina Raimondo emphasized that this investment will bolster America's semiconductor supply chain by providing a domestic source of silicon wafers, which are crucial for advanced chip production. This move is expected to enhance economic and national security for Americans while creating over 2,000 jobs across Texas and Missouri.
Arati Prabhakar, Assistant to the President for Science and Technology, highlighted that the semiconductor wafers produced from this investment will be essential for the complex chips needed to compete in the global economy. This initiative will strengthen national security, advance clean energy transitions, and create jobs supporting families in Texas and Missouri.
Five leading companies, including GlobalWafers, currently dominate over 80% of the global 300mm silicon wafer manufacturing market, with approximately 90% of silicon wafers sourced from East Asia. The proposed CHIPS investment will enable GlobalWafers to build and expand facilities in Sherman, Texas, and St. Peters, Missouri.
In Sherman, Texas, GlobalWafers will establish the first 300mm silicon wafer manufacturing facility for advanced chips in the United States. Additionally, a portion of the existing silicon epitaxy wafer manufacturing facility will be converted to produce 150mm and 200mm Silicon Carbide (SiC) epitaxy wafers, critical for high-voltage applications such as electric vehicles and clean energy infrastructure.
In St. Peters, Missouri, a new facility will produce 300mm Silicon-on-Insulator (SOI) wafers, which offer significantly improved performance in harsh environments and are commonly used in defense and aerospace applications.
GlobalWafers is also investing in workforce development in Texas through partnerships with Southern Methodist University, the University of Texas Dallas, Sherman High School, Denison High School, and Grayson College. These collaborations aim to establish electronics labs and provide targeted training for technician certifications in the semiconductor industry. In St. Peters, MEMC is developing an apprenticeship program for Maintenance Technicians with the National Institute for Industry and Career Advancement (NIICA) and local high schools, alongside a program named MegaTech with St. Charles Community College.
