GlobalWafers Secures $200M from CHIPS Act for U.S. Expansion

GlobalWafers, a subsidiary of Sino-American Silicon Products, has secured over 200 million dollars in funding from the U.S. CHIPS Act in June. This funding is part of a larger 406 million dollar grant announced by the Biden administration in December, aimed at expanding silicon wafer production capacity in the U.S. The funds will be used for projects in Texas and Missouri.

The funding comes as part of a broader effort to bolster the U.S. semiconductor industry, which has faced significant challenges in recent years. The CHIPS Act, signed into law in August 2022, provides 52.7 billion dollars in funding for semiconductor research, development, and manufacturing. The act aims to enhance the U.S. semiconductor industry's competitiveness, reduce reliance on foreign suppliers, and create jobs.

GlobalWafers' funding is part of a larger trend of semiconductor companies receiving significant investments from the U.S. government. In May, the company announced that it would receive the funding in stages as it meets specific milestones. The company also inaugurated a new wafer fabrication plant in Sherman, Texas, in May, which cost 3.5 billion dollars and was announced in 2022.

GlobalWafers has also announced a partnership with Apple, the iPhone manufacturer, to supply 300 millimeter silicon wafers from its Texas plant. This partnership is part of Apple's recent announcement of an additional 100 billion dollar investment in the U.S. The company's chairperson stated that this collaboration would help prepare for increasing demand in the U.S. market. If demand continues to grow, the company may accelerate its expansion plans.

Despite the funding, there have been concerns about the implementation of the CHIPS Act. The Trump administration had previously expressed doubts about the progress of the funding, stating that negotiations were ongoing for some of the act's provisions. In June, the U.S. Secretary of Commerce indicated that some funding may be reduced. However, GlobalWafers' receipt of funding suggests that the act is moving forward as planned.