Even experts far removed from the specifics of the semiconductor industry have repeatedly warned that the efforts of the US authorities to revive this segment of the industry must include an integrated approach. Not only chip production facilities, but also their contractors should appear on the territory of the country. On this basis, silicon wafer manufacturer GlobalWafers will receive up to $400 million in subsidies for the construction of plants in Texas and Missouri.
Image Source: Samsung Electronics
GlobalWafers is a Taiwanese manufacturer of silicon wafers – essentially, blanks for the further production of silicon crystals, which ultimately become processors and microcircuits for various purposes. Without the presence of a sufficient number of specialized enterprises in the United States, it would be difficult to ensure self-sufficiency of the local semiconductor industry. Expecting to spend $4 billion to build silicon wafer production plants in Texas and Missouri, the company can now qualify for $400 million in subsidies from the US government.
This was reported by Bloomberg, calling this grant the 13th in a row as part of the program to support the American national semiconductor industry, for the development of which the so-called “Chip Law” was adopted at the end of 2022, providing for the allocation of $39 billion for the construction of enterprises, so or otherwise related to the production of chips in the United States. This amount will be distributed among subsidy applicants, and they can also qualify for $75 billion in preferential loans and tax deductions of 25%.
In total, more than 670 companies from the United States and other countries are applying to receive part of the $39 billion in subsidies. GlobalWafers is in seventh place in the list of “lucky ones” in terms of the amount of financial assistance received, by a large margin inferior to the sixth position of the American company GlobalFoundries. GlobalWafers’ two projects in Texas and Missouri will create 2,500 jobs in those states. The interest of the American authorities in subsidizing projects is also explained by the fact that GlobalWafers will supply American clients with special silicon wafers, which are used to make chips for defense purposes. The company is already building a plant in Texas; it will be the larger of the two mentioned.