GlobalWafers gets $200m from US CHIPS act for Texas plant

GlobalWafers, a subsidiary of Taiwan-based Sino-American Silicon Products, received over US$200 million from the US CHIPS Act in June for its projects in Texas and Missouri.

This payment represents about half of a US$406 million award announced in December 2024 to boost US silicon wafer production.

The grant is being paid in stages, tied to specific project milestones.

In May, GlobalWafers opened a new US$3.5 billion wafer plant in Sherman, Texas. The company also said it will supply 300mm silicon wafers from this Texas plant to Apple.

The future of some CHIPS Act grants has been uncertain, with the Trump administration indicating potential changes or cancellations.

🔗 Source: Reuters

🧠 Food for thought

1️⃣ Silicon wafer supply chain concentration creates strategic vulnerability

GlobalWafers’ $3.5 billion Texas facility addresses a critical bottleneck in semiconductor manufacturing that extends beyond just chip production.

The purest silicon for semiconductors comes from a single quarry in Spruce Pine, North Carolina, making this location crucial for global chip production1.

This concentration means that disruptions to wafer supply can cascade through the entire semiconductor ecosystem, affecting everything from smartphones to data centers.

The polished silicon wafer market is projected to grow from $9.53 billion in 2024 to $16.32 billion by 2032, driven by increasing demand for AI-enabled devices and automotive electronics2.

By establishing domestic wafer production capacity, the U.S. reduces dependence on Asian suppliers who currently dominate this market, particularly given that the Asia-Pacific region leads global wafer production2.

2️⃣ Government intervention mirrors historical precedents but with different market dynamics

The CHIPS Act funding for GlobalWafers echoes earlier government efforts to strengthen U.S. semiconductor competitiveness, though today’s market landscape differs significantly from past interventions.

In the 1980s, the U.S. held 60% of the global semiconductor market, but this share dropped to 35% by 1989 while Japan captured 51%3.