Taiwan's GlobalWafers: No Changes to US Subsidies Yet, Expansion Plans Uncertain

GlobalWafers, a leading Taiwanese semiconductor wafer manufacturer, has not received any notifications regarding changes to the agreed subsidies under the U.S. CHIPS Act. The company's CEO, Doris Hsu, confirmed this during a press event in Hsinchu, Taiwan. The CHIPS Act, signed into law in 2022, aims to boost American domestic semiconductor output with $39 billion in funding.

GlobalWafers has secured contracts worth $406 million under the CHIPS Act, which supports the company's expansion plans in the U.S. The subsidies are intended to help establish high-volume 300-mm wafers production facilities and increase silicon-on-insulator wafers production in Texas and Missouri. These projects are expected to create approximately 880 manufacturing jobs and 1,700 construction jobs.

However, the new U.S. administration is reviewing the projects awarded under the CHIPS Act, and there have been signals of delays to some upcoming semiconductor disbursements. This review could potentially lead to changes in the conditions or delays in the disbursement of subsidies, which may impact GlobalWafers' expansion plans in the U.S.



If faced with changes to its subsidies, GlobalWafers could explore alternative strategies to mitigate the impact on its expansion plans. Some possible alternatives include securing alternative funding sources, expanding operations in other countries, focusing on other product lines, and strengthening partnerships with customers and partners.

GlobalWafers has already started expanding its factories in six countries, including Italy and Denmark, which could help offset any setbacks in the U.S. market. Additionally, the company could invest more in silicon carbide (SiC) wafers, which are critical for high-voltage applications in electric vehicles and clean energy infrastructure. This would allow the company to diversify its revenue streams and reduce its dependence on a single market or product line.



In conclusion, while GlobalWafers has not received any notifications about changes to the agreed subsidies under the U.S. CHIPS Act, the uncertainty surrounding the review of these awards by the new administration could impact the company's expansion plans in the U.S. By exploring alternative strategies and maintaining a diversified production portfolio, GlobalWafers can mitigate risks and maintain a competitive edge in the global semiconductor industry.