GlobalWafers Secures $200M CHIPS Act Boost to Power U.S. Expansion and Apple Partnership

Taiwan-based Sino-American Silicon Products announced that its subsidiary, GlobalWafers, secured over $200 million in funding from the U.S. CHIPS Act in June. This amount represents approximately half of the total grants it received last year, marking a significant financial boost for one of the leading silicon wafer suppliers.

The funds originate from a $406 million allocation revealed by the Biden administration this past December. These resources are designated for GlobalWafers' projects in Texas and Missouri, aimed at significantly expanding the U.S. production capacity for silicon wafers, a crucial component in the semiconductor industry.

There were initial uncertainties during the Trump administration regarding the progress of these grants, with negotiations over portions of the CHIPS Act funds being reconsidered. However, in June, U.S. Commerce Secretary Howard Lutnick indicated there could be reductions in some funding. Despite this, GlobalWafers confirmed in May that the total grant would be disbursed in phases as specific milestones are reached.

In the same month, the company launched a new wafer plant in Sherman, Texas, a substantial $3.5 billion investment that had been announced in 2022. The Sherwood facility exemplifies the firm’s commitment to bolstering its U.S. operations.

Furthermore, GlobalWafers plans to collaborate with Apple to supply 300mm silicon wafers from its Texas factory, aligning with Apple’s announcement of an additional $100 billion U.S. investment. Doris Hsu, chairwoman of Sino-American Silicon Products and GlobalWafers, highlighted during an earnings call that this partnership aims to meet domestic market demands efficiently.

Hsu also indicated that should U.S. demand continue to escalate, an expedited expansion phase might be considered, underscoring the potential growth and strategic importance of the U.S. market for the company.