The United States Department of Commerce has finalized a US$406 million subsidy for Taiwan’s GlobalWafers to expand silicon wafer production in the US.

This initiative includes the first high-volume production of 300-mm wafers for advanced semiconductors and improvements in silicon-on-insulator wafer manufacturing.

The funding is part of the Biden administration’s efforts to strengthen the domestic semiconductor supply chain.

The US is aiming to reduce its dependence on East Asia, where 90% of 300-mm wafer production is taking place.

GlobalWafers, the third-largest producer of silicon wafers critical in producing computer chips, plans to invest nearly US$4 billion in Texas and Missouri, creating over 2,500 jobs.