Taiwan GlobalWafers To Build $5-B Chip Plant In Texas

GlobalWafers, a Taiwan-based technology company, plans to build a $5 billion factory in Sherman, Texas to manufacture silicon wafers for Intel and Taiwan Semiconductor Manufacturing Co. (TMSC) as part of a US effort to increase domestic production of advanced semiconductors and reduce reliance on imports, Sheri Walsh reported for United Press International (UPI).

Photo Insert: GlobalWafers has already expanded to countries like Japan.

"Today's announcement from GlobalWafers is critical to rebuilding the domestic semiconductor supply chain, strengthening our economic and national security, and creating U.S. manufacturing jobs," said. US Secretary of Commerce Gina Raimondo.

According to GlobalWafers, local manufacturing of silicon wafers is currently predicted to cover only 20% of US demand by 2025, with the chip shortfall impacting production on a wide range of items, including autos.

"With the global chips shortage and ongoing geopolitical concerns, GlobalWafers is taking this opportunity to address the United States semiconductor supply chain resiliency issue by building an advanced node, state-of-the-art, 300-millimeter silicon wafer factory," said Doris Hsu, GlobalWafers chairman and CEO.

"Instead of importing wafers from Asia, GlobalWafers will produce and supply wafers locally."

The 3.2 million-square-foot silicon wafer plant built by GlobalWafers will be the largest of its kind in the United States and one of the largest in the world. Construction is set to begin later this year, with the plant estimated to create 1,500 new jobs when it begins production in 2025.

If Congress passes the Chips Act, GlobalWafers' $5 billion investment might be bolstered by the US government. In addition to research and development, the Act contains $52 billion in support for domestic semiconductor production.

"If Congress doesn't pass the Chips Act in the next few weeks, then the United States will be a big loser because these companies will go to other countries," Raimondo told The Wall Street Journal.

"With the proper level of federal incentives, I can envision the city of Sherman developing into the complete semiconductor ecosystem to fully support the growing U.S. semiconductor industry," Sherman-based GlobalWafers President Mark England said.

"This announcement is another critical step in addressing the U.S. and global chips supply issue."

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