GlobalWafers, a Taiwanese semiconductor materials maker, has increased its planned US investment to US$7.5 billion.

This decision represents a US$4 billion increase from its prior commitment, according to a company statement released on May 16, 2025.

The announcement coincided with the opening of the company’s first factory in Sherman, Texas, on May 15, 2025.

The facility will help supply materials to US-based chipmakers such as Apple and Nvidia.

GlobalWafers aims to expand its Texas workforce to 650 by 2028, focusing on engineering and technical positions.

🔗 Source: Bloomberg

🧠 Food for thought

1️⃣ US semiconductor renaissance faces funding uncertainties despite record investments

GlobalWafers’ expanded $7.5 billion investment is part of a significant wave of semiconductor manufacturing commitments in the US, with over $540 billion announced since 2020 1.

This revival aims to reverse a dramatic decline in America’s global chip production share, which fell from 37% in 1990 to just 10% in 2022 2.

However, GlobalWafers has expressed concerns about profitability without securing expected CHIPS Act subsidies, anticipating $406 million in government funding that represents about 10% of their planned investment 3.

The company’s chairwoman indicated delays in CHIPS Act funding could extend the breakeven timeline for new facilities, potentially affecting future investment decisions if the program is modified 3.

This tension reflects the broader semiconductor industry’s dependence on government incentives to offset the higher costs of US-based manufacturing compared to established Asian production hubs.

2️⃣ Strategic positioning in the semiconductor supply chain drives investment decisions

As the world’s third-largest silicon wafer producer, GlobalWafers’ Texas facility represents strategic vertical integration in the US semiconductor ecosystem, positioning the company to supply essential components to manufacturers like TSMC 4.

The company aims to enjoy a near-monopoly position for 300mm wafers in the US market, enhancing its competitive advantage while reducing freight costs through local production 5.