The Biden-Harris Administration has announced preliminary terms with GlobalWafers to significantly increase the production of silicon wafers in the United States. The U.S. Department of Commerce and GlobalWafers America, LLC, along with MEMC LLC, subsidiaries of GlobalWafers Co., Ltd., have signed a non-binding preliminary memorandum of terms (PMT) to provide up to $400 million in proposed direct funding under the CHIPS and Science Act. This initiative aims to bolster domestic semiconductor wafer production and advance U.S. technology leadership.
President Biden signed the bipartisan CHIPS and Science Act as part of his Investing in America agenda, aiming to revitalize domestic supply chains, create well-paying jobs, and foster investments in future industries. The proposed investment would support the construction of new wafer manufacturing facilities and generate 1,700 construction jobs and 880 manufacturing jobs across Texas and Missouri.
“President Biden is restoring our leadership in the entire semiconductor supply chain – from materials to manufacturing, to R&D,” said U.S. Secretary of Commerce Gina Raimondo. “With this proposed investment, 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.”
Arati Prabhakar, Assistant to the President for Science and Technology and Director of the White House Office of Science and Technology Policy, stated: “The semiconductor wafers that will come from today’s announcement will be the foundation for the complex chips we need to compete in the global economy.”
Silicon wafers are essential components in semiconductor manufacturing. Currently, five leading companies control over 80% of the global 300mm silicon wafer market, with approximately 90% sourced from East Asia. The proposed CHIPS investment would enable GlobalWafers to build and expand facilities within the United States.
As part of this initiative, GlobalWafers plans to convert a portion of its existing silicon epitaxy wafer manufacturing facility in Sherman, Texas into silicon carbide (SiC) epitaxy wafer manufacturing for high-voltage applications such as electric vehicles and clean energy infrastructure.
GlobalWafers is also involved in workforce development initiatives through partnerships with educational institutions like Southern Methodist University-led Texoma Tech Hub and North Texas Semiconductor Workforce Development Consortium led by University of Texas Dallas. Additionally, MEMC is developing an apprenticeship program for Maintenance Technicians with local high schools and St. Charles Community College.
The Department may offer applicants a PMT on a non-binding basis after satisfactory completion of merit review processes. These terms outline potential CHIPS incentives awards subject to due diligence and negotiation.
CHIPS for America has announced up to $30.1 billion across thirteen preliminary memoranda aimed at revitalizing America's semiconductor industry. This includes significant public-private investments projected at over $300 billion by decade's end.
Secretary Raimondo previously indicated that by 2030 America could produce 20% of the world’s leading-edge chips. With these efforts underway, four out of five leading-edge companies are expanding operations within U.S borders.
To date, more than 670 statements of interest have been received by the Department along with over 230 pre-applications/full applications for NOFO 1 projects aimed at advancing national economic security.
For further information about CHIPS for America initiatives visit https://www.chips.gov.
