GlobalWafers Co Ltd., a leading-edge tech design and manufacturing company based out of Taiwan, has reportedly announced that it will invest more than $5 billion towards a new semiconductor plant in Texas.
As per reports, through the announcement, the company has made its move to the United States official, following a failed investment in Europe.
The company revealed that the upcoming plant, which would see construction begin later this year, will be producing 300-milimeter silicon wafers and create more than 1,500 jobs in Sherman, Texas.
GlobalWafers CEO and Chairwoman, Doris Hsu, stated that in light of the global chip shortage and geopolitical tensions, GlobalWafers is developing a state-of-the-art, 300-millimeter semiconductor factory to effectively address the ongoing U.S. semiconductor supply chain issues, enable a local supply od wafers instead of having them imported from Asia.
The firm also mentioned that the investment will be implemented in phases, and would only scale up after confirming actual demand from the customers.
The United States has been encouraging foreign tech firms to manufacture their products in the country, with U.S. Secretary of Commerce, Gina Raimondo, stating that this move will both boost the economy and improve national security.
On Monday Raimondo urged the Congress to agree on $52 billion fund to help chipmakers scale their operations in the country, warning that without any proper legislation, firms would abandon their expansion plans.
Meanwhile, last year, the world’s largest contract chipmaker and a major supplier for Apple Inc., TSMC (Taiwan Semiconductor Manufacturing Co Ltd) started construction of a new semiconductor plant in Arizona, where it plans to invest over $12 billion.
In the wake of the global semiconductor supply shortage, Europe has become increasingly dependent on Asian suppliers, which has triggered government efforts to boost local production.
However, unlike the US, Europe has failed to attract Taiwanese tech firms to its shores despite encouraging chip firms to make investments there.
In 2021, GlobalWafers had acquired Germany’s Siltronic and had hoped to wrap up the transaction by the end of the same year, but the venture proved to be fruitless. This failed deal with GlobalWafers could have created the second-largest 300 mm wafer manufacturing unit in the region after Japan’s Shin-Etsu.