GF and GlobalWafers partner to expand semiconductor wafer
The USD 800 million supply deal includes USD 210 million in capital expansion, the creation of more than 75 jobs in Missouri and will provide wafers for GlobalFoundries' manufacturing facilities in New York and Vermont.
GlobalFoundries has announced a USD 800 million agreement to add 300mm silicon-on-insulator (SOI) wafer manufacturing and expand existing 200mm SOI wafer production at GlobalWafers' MEMC facility in O'Fallon, Missouri. In particular, the 300mm wafers made at GlobalWafers' (GWC) MEMC site in Missouri will be used at GF's manufacturing facility, Fab 8 in Malta, New York, and the 200mm wafers made at the Missouri site will be used at GF's Fab 9 in Essex Junction, Vermont. These wafers will be used to create semiconductor solutions to meet the growing demand for the company's advanced RF technologies across a range of applications including 5G smartphones, wireless connectivity, automotive radar, and aerospace. The long-term agreement includes nearly USD 210 million in capital expenditures to expand GWC's MEMC facility in Missouri and will create more than 75 new jobs. The 300mm pilot line is on track to be completed in Q4 this year. The agreement is strengthened by USD 9.4 million in investments and support from the State of Missouri, as well as support from the City of O'Fallon, Ameren Missouri, Spire, and Greater St. Louis, Inc. GF is investing USD 1.4 billion in 2021 alone to expand its manufacturing capacity, to meet the needs of customers and address the growing global demand for computer chips. As part of this growth, GF will require an increased supply of wafers like those made by GWC. "As a trusted semiconductor manufacturer and supplier to the U.S. government, and the world leader in RF semiconductor technology, GF has been leading the charge to accelerate U.S. semiconductor manufacturing and boost our capacity to meet the growing global demand for chips," says GF CEO Tom Caulfield in a press release. "The kind of partnership we are announcing today with GWC is only possible thanks to Congressional leadership and the renewed national interest in growing U.S. semiconductor manufacturing capacity." "We are proud to deepen our strategic partnership with GF, and to expand our important role in the U.S. semiconductor supply chain," adds Doris Hsu, Chairman and CEO of GWC. "We thank the State of Missouri for its support. We also thank our incredible O'Fallon team, whose dedication and hard work have enabled our success and growth. We look forward to ramping up our 300mm pilot line this year and accelerating our build-out with GF."