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Biden-Harris Administration Announces CHIPS Incentives Awards with GlobalWafers to Support Domestic Production of Silicon Wafers
December 18, 2024 | U.S. Department of CommerceEstimated reading time: 2 minutes
The Biden-Harris Administration announced that the U.S. Department of Commerce issued direct funding awards to GlobalWafers America, LLC (GWA) and MEMC LLC (MEMC), subsidiaries of GlobalWafers Co., Ltd. (GlobalWafers), of up to $406 million under the CHIPS Incentives Program’s Funding Opportunity for Commercial Fabrication Facilities. The awards come after the previously signed preliminary memorandum of terms, announced on July 17, 2024, and the completion of the Department’s due diligence. The Department will disburse the funds based on the completion of project milestones by GWA and MEMC.
“The semiconductor wafers that will be produced here in the U.S. because of this investment in GlobalWafers are the foundation of the advanced chips that will help us out-innovate and out-compete the rest of the world,” said U.S. Secretary of Commerce Gina Raimondo. “As a result of this investment, CHIPS for America is working to strengthen our supply chains, protect our national and economic security, and create an estimated over 2,000 jobs across Texas and Missouri.”
“Today’s announcement secures a nearly $4 billion investment to onshore a domestic source for silicon wafers - the foundation for all chips and an end-to-end semiconductor ecosystem here in the United States,” said National Economic Advisor Lael Brainard. “Thanks to the bipartisan CHIPS and Science Act, the United States is able to make the investments needed to lead in manufacturing and innovation.”
These CHIPS investments will support projects with total capital expenditures of approximately $4 billion across Texas and Missouri, helping to strengthen the domestic supply chain for key semiconductor components. The awards will directly support the construction of wafer manufacturing facilities in Texas and Missouri and is expected to create approximately 1,700 construction jobs and 880 manufacturing jobs across both states. The GWA facility in Texas will be the first advanced high-volume 300mm silicon wafer facility in the United States; silicon wafers from this facility will be used in the manufacturing of advanced leading-edge and memory devices. The MEMC facility in Missouri will serve as a key domestic production site for 300mm silicon-on-insulator (SOI) wafers; SOI wafers from this facility will be a key input for devices used across the defense and aerospace sectors.
Further, as part of award terms, GlobalWafers has agreed to convert a portion of its existing silicon epitaxy wafer manufacturing facility in Sherman, Texas, to silicon carbide epitaxy wafer manufacturing. Silicon carbide epitaxy wafers are a critical component for high-voltage applications, notably including electric vehicles and clean energy infrastructure.
“GlobalWafers is proud to be a CHIPS for America participant and the only global producer now building advanced wafer facilities in the United States,” said Doris Hsu, Chairperson and CEO of GlobalWafers. “I'd like to especially thank Secretary Raimondo and her CHIPS team for being committed partners throughout this important and exhilarating journey. Through our new investments announced today, we look forward to innovating with our U.S. based chip customers for decades to come.”
As stated in the CHIPS Notice of Funding Opportunity for Commercial Fabrication Facilities, CHIPS for America will distribute direct funding to recipients for capital expenditures based on the completion of construction, technology, production, and commercial milestones. The program will track the performance of each CHIPS Incentives Award via financial and programmatic reports, in accordance with the award terms and conditions.
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