USAThe Department of Commerce just announced a massive $400 million investment to support domestic semiconductor wafer production and advance American technology.
This investment ischipAs part of the CHIPS Act, it aims to promote domestic semiconductor wafer production and enhance the technological strength of the United States. This time, the lucky winner is GlobalWafers, which reached a preliminary non-binding memorandum of understanding (PMT) with the Department of Commerce and obtained this huge amount of funds.
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GlobalWafers plans to use the money to build new wafer manufacturing facilities in Sherman, Texas and St. Peters, Missouri. Once completed, it is expected to create 1,700 construction jobs and 880 manufacturing jobs. This is not only a big benefit to the company, but also a huge boost to the local economy.
At the Texas facility, they will produce 300mm silicon wafers for advanced chips, including edge and storage devices, while in Missouri they will make 300mm silicon-on-insulator wafers for chips used in harsh environments, such as in defense applications.
GlobalWafers has a market share of more than 80% in the silicon wafer market and almost 90% of silicon wafer supply in East Asia. Commerce Secretary Gina Raimondo said the investment will strengthen the U.S. semiconductor supply chain.
Arati Prabhakar, director of the White House Office of Science and Technology Policy, also welcomed the investment, saying these wafers will form the basis for the complex chips we need to compete in the global economy. “We are strengthening our national security, advancing the clean energy transition, and creating good jobs that support families in Texas and Missouri.”
So far, the funding for chip suppliers has reached $30.1 billion. The Commerce Department has signed 13 preliminary cooperation agreements with companies including Samsung, Micron, Intel and TSMC. In addition to funding to attract suppliers to bring chip manufacturing operations to the United States, the Commerce Department is also providing funding for advanced chip research and development.
This week, the Commerce Department also announced CHIPS for America's National Advanced Packaging Manufacturing Program, which will provide up to $1.6 billion in funding to "build and accelerate domestic semiconductor advanced packaging capabilities."