US government approves $400m grant to GlobalWafers

This subsidy represents the latest move by the US government to on-shore chip manufacturing and bolster the domestic supply chain in the face of global competition. In fact, it’s the 13th such award from the Chips and Science Act program, which was set up to distribute USD 39 billion in grants and USD 75 billion in loans and loan guarantees.

GlobalWafers, a Taiwanese manufacturer of silicon wafers used in chip production, is the latest beneficiary. This new grant will support its in-progress facilities across two sites:

• Sherman, Texas: GlobalWafers will establish the first 300mm silicon wafer manufacturing facility for advanced chips in the US. 300mm silicon wafers are a key input used by foundries and integrated device manufacturers to manufacture leading-edge, mature-node, and memory chips.
• St. Peters, Missouri: This will be a new facility to produce 300mm silicon-on-insulator wafers. SOI wafers allow for significantly improved performance in harsh environments and are commonly used in defence and aerospace end uses.

Additionally, GlobalWafers plans to convert a portion of its existing silicon epitaxy wafer manufacturing facility in Sherman, Texas to silicon carbide epitaxy wafer manufacturing, producing 150mm and 200mm SiC epitaxy wafers. SiC epitaxy wafers are a critical component for high-voltage applications, notably including electric vehicles and clean energy infrastructure.

"GlobalWafers will play a crucial role in bolstering America's semiconductor supply chain by providing a domestic source of silicon wafers that are the backbone of advanced chips,"  said Commerce Secretary Gina Raimondo in an official release. “As a result of this proposed investment, the Biden-Harris Administration is helping to secure our supply chains, which will create over 2,000 jobs across Texas and Missouri and ultimately lowering costs and improving economic and national security for Americans.”