The U.S. Department of Commerce has just announced a significant $4 billion investment aimed at supporting domestic semiconductor wafer production and advancing American technology.
This investment is part of the CHIPS Act, intended to boost domestic semiconductor wafer production and enhance the U.S. technological prowess. The fortunate recipient this time is GlobalWafers, which has reached a preliminary non-binding memorandum of understanding (PMT) with the Commerce Department, securing this substantial funding.
Image Source: Picture generated by AI, licensed by Midjourney service provider
GlobalWafers plans to use this funding to construct new wafer manufacturing facilities in Sherman, Texas, and St. Peters, Missouri. Upon completion, it is expected to create 1,700 construction jobs and 880 manufacturing positions. This is not only a significant boon for the company but also a substantial boost for the local economy.
In the Texas factory, they will produce 300mm silicon wafers for advanced chips, including edge and memory devices. In Missouri, they will manufacture 300mm silicon-on-insulator wafers for chips in harsh environments, such as those used in defense applications.
GlobalWafers holds over 80% of the silicon wafer market share and almost monopolizes the supply of silicon wafers in East Asia, accounting for 90%. Commerce Secretary Gina Raimondo stated that this 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, believing that these wafers will form the basis of the complex chips we need to compete in the global economy. "We are enhancing national security, advancing the transition to clean energy, and creating good jobs that support families in Texas and Missouri."
To date, funding for chip suppliers has reached $30.1 billion. The Commerce Department has signed 13 preliminary agreements with companies including Samsung, Micron, Intel, and TSMC. In addition to attracting suppliers to bring chip manufacturing to the U.S., the Commerce Department is also providing funding for advanced chip research and development.
This week, the U.S. Department of Commerce also announced the "National Advanced Packaging Manufacturing Program," which will provide up to $1.6 billion in funding to "establish and accelerate domestic capabilities in advanced semiconductor packaging."
Key Points:
💰 **$4 Billion Investment**: The Commerce Department invests in GlobalWafers under the CHIPS Act to boost domestic chip production in the U.S.
🏭 **Job Creation**: New wafer manufacturing facilities are expected to create 1,700 construction jobs and 880 manufacturing jobs.
🌐 **Strengthening the Supply Chain**: The investment will strengthen the U.S. semiconductor supply chain, improving national security and economic competitiveness.