GlobalWafers to Receive $400M in Subsidies to Build Silicon Wafer Chip Manufacturing in the U.S.

Even experts far removed from the specifics of the semiconductor industry have repeatedly warned that the US government’s efforts to revive this segment of the industry must include a comprehensive approach. Not only chip production facilities, but also their contractors must appear in the country. On this basis, silicon wafer manufacturer GlobalWafers will receive up to $400 million in subsidies for the construction of enterprises in Texas and Missouri.

Image source: Samsung Electronics

GlobalWafers is a Taiwanese manufacturer of silicon wafers, essentially blanks for further production of silicon crystals that eventually become processors and microchips for various purposes. Without a sufficient number of specialized enterprises in the United States, it would be difficult to ensure self-sufficiency of the local semiconductor industry. Expecting to spend $4 billion to build silicon wafer factories in Texas and Missouri, this company can now apply for $400 million in subsidies from the American government.

The agency reported this Bloombergcalling this grant the 13th in a row in the program to support the American national semiconductor industry, for the development of which the so-called “CHIP Act” was adopted at the end of 2022, providing for the allocation of $39 billion for the construction of enterprises somehow related to the production of chips in the United States. This amount will be distributed among applicants for subsidies, and they can also apply for $75 billion in preferential loans and tax deductions of 25%.

In total, more than 670 companies from the US and other countries are applying for a share of the $39 billion in subsidies, GlobalWafers is in seventh place on the list of “lucky ones” in terms of the amount of financial assistance received, far behind the sixth place of the American company GlobalFoundries. The implementation of two GlobalWafers projects in Texas and Missouri will contribute to the creation of 2,500 jobs in these states. The interest of the American authorities in subsidizing the projects is also explained by the fact that GlobalWafers will supply American clients with special silicon wafers that are used to manufacture defense chips. The company is already building a plant in Texas, it will be the larger of the two mentioned.