Apple, GlobalWafers partner on US silicon wafer production

Apple has partnered with GlobalWafers, the world’s third-largest silicon wafer supplier, to source 300mm silicon wafers from new US factories as part of efforts to strengthen the domestic semiconductor supply chain.

GlobalWafers, headquartered in Taiwan, will supply wafers from its facility in Sherman, Texas, through its US subsidiary GlobalWafers America.

Apple’s move is part of a broader plan to invest US$100 billion in the US over the next four years, raising its total US investment to US$600 billion.

The wafers produced in Texas will be used by US-based semiconductor manufacturers, including Taiwan Semiconductor Manufacturing Company (TSMC) in Arizona and Texas Instruments in Sherman, to make chips for Apple devices.

GlobalWafers’ Texas plant is scheduled to begin high-volume production in the second half of this year and may qualify for an investment tax credit of up to 35 percent under US advanced manufacturing incentives.

GlobalWafers said it may speed up expansion in the US depending on customer demand.

🔗 Source: Taipei Times

🧠 Food for thought

1️⃣ Silicon wafer manufacturing returns to America after three-decade absence

GlobalWafers’ partnership with Apple marks a significant reversal of a long-term trend that saw advanced wafer production leave the United States for cheaper overseas locations.

The company’s president explicitly noted that “over the past 30 years advanced silicon wafer production all but left America for lower-cost manufacturing hubs” [original article].

This exodus created a strategic vulnerability, as Taiwan now produces over 90% of the world’s most advanced semiconductors, making global supply chains heavily dependent on a single region 1.

The challenge of bringing production back is substantial. Building semiconductor facilities in the US takes 38 months compared to 20 months in Taiwan and costs approximately twice as much 2.

However, the CHIPS Act’s 35% tax credit for advanced manufacturing investments helps offset these cost disadvantages, making domestic production financially viable despite higher expenses.

2️⃣ Wafer production represents the foundation of semiconductor supply chain control

GlobalWafers’ position as the only advanced 300mm wafer manufacturer participating in the CHIPS program highlights the strategic importance of this often-overlooked component.