Taiwan's GlobalWafers to build huge Texas wafer plant

Taiwan's GlobalWafers plans to establish a huge plant in northern Texas to make a component that is vital to making semiconductors, with an investment of up to $5 billion.

The plan to produce silicon wafers, which would reinforce fragile supplies of computer chips, is dependent on legislation pending in the US Congress.

With the global chips shortage and ongoing geopolitical concerns, GlobalWafers is taking this opportunity to address the United States semiconductor supply chain resiliency, according to GW Chairman and CEO Doris Hsu.

Instead of importing wafers from Asia, GlobalWafers USA GWA will produce and supply wafers locally. The global shortage in recent months has caused a rise in US prices, as the material is used to make chips needed for everything from cars to phones.

The statement said that the first production of the new facility will begin this year in Sherman, Texas, as many as 1,500 jobs will be created by the construction of the new facility in more than two decades.

GW President Mark England said that the impasse in Congress over the $52 billion CHIPS Act, designed to boost the US industry, could hinder the plans.

He said in an email to the AFP that the size and possibly the actuality of the Texas investment are at stake.

The Senate and House of Representatives have not agreed on the final form of the legislation that would give subsidies to manufacturers, and Democrats and Republicans are wrangling over the differing versions.

England said in a statement that the legislation would help level the global incentive playing field and would be instrumental in ensuring semiconductor investments and supply.

Commerce Secretary Gina Raimondo urged the passage of the CHIPS Act, as the US and state officials cheered the announcement.

She said that we are at a make-or-break moment to expand domestic semiconductor production. The bill will show America's commitment to robust domestic semiconductor capacity and give more companies the confidence they need to move forward with investments here and that's why it's important to pass this bill. The 300 millimeter silicon wafers are the starting material for all advanced semiconductor fabrication sites or fabs, including the recently announced US expansions by GlobalFoundries, Intel, Samsung, Texas Instruments and TSMC, but most are imported from Asia.