America is about to get the biggest semiconductor silicon-wafer manufacturing facility yet built on US soil, as the fallout from the global chip shortage causes American companies to bring their chip manufacturing processes home.
GlobalWafers Co. unveiled plans to build a $5 billion semiconductor silicon-wafer factory that will produce 300-millimeter silicon wafers in Sherman Texas. Construction is set to begin later this year, and the first fab’s production is anticipated as early as 2025, according to a statement released by the Hsinchu, Taiwan-based company.
The United States is seeking to expand domestic manufacturing capacity after a global chip shortage during the Covid pandemic disrupted the availability of everything from new cars to smartphones. The US was also chastened by a review of supply chain vulnerabilities last year which showed that while the US does possess a decent amount of chip design and manufacturing equipment, the industry overall is “highly dependent” on overseas sales, mostly from China.
GlobalWafers said, “This investment will represent the first new silicon wafer facility in the US in over two decades and close a critical semiconductor supply-chain gap.”
Most silicon wafers are currently manufactured in Asia, which forces the US semiconductor industry to rely on purchasing imported wafers. Since they are a critical starting material for all advanced semiconductor fabrication, this was a critical supply chain vulnerability that could have curtailed all other aspects of US semiconductor manufacturing.
For months, Congress has been trying to move forward a bill which would provide $52 billion in incentives for domestic semiconductor manufacturing. The bill would provide billions of dollars for research and development of new technologies that would keep US semiconductor manufacturing ahead of all other competitors globally. If the bill passes, GlobalWafers may be eligible for additional funding.
Global Wafers predicts its new facility will create up to 1500 jobs, and could produce as many as 1.2 million wafers monthly.
