GlobalWafers Doubles Down on US Investment, Pours $4 Billion into Texas to Dodge Tariffs and Board the US Semiconductor Train
Expansion of GlobalWafers in the United States to Accelerate
By Staff Reporter
GlobalWafers Co, the world's third-largest silicon wafer supplier, confirmed it's pouring an additional $4 billion into the US - bringing its total investment to a staggering $7.5 billion. The move comes as a response to US customers' insatiable demand for locally produced semiconductors and an ambitious tariff-avoidance strategy, according to the company's chairperson, Doris Hsu.
At the grand opening of GlobalWafers' new advanced 12-inch wafer fabrication plant in Sherman, Texas, Hsu revealed the latest commitment, which will bolster the company's position as the sole advanced wafer manufacturer operating in the US.
"American companies are eager to snap up our local capacity to reduce exposure to potential tariffs. They've demonstrated strong interest in securing more local supply, and we aim to help them meet that demand," Hsu explained during a conference call yesterday.
GlobalWafers supplies silicon wafers to major chipmakers, such as Taiwan Semiconductor Manufacturing Co (TSMC). TSMC plans to invest a jaw-dropping $165 billion in the US, constructing six wafer fabrication plants, a chip packaging facility, and a research-and-development center.
Nvidia Corp and other U.S. semiconductor companies have pledged to invest at least $500 billion stateside, with the White House's backing, further fueling the chipmaking bonanza.
In 2018, GlobalWafers announced a $3.5 billion investment to fund the first and second phases of its flagship expansion project in the US, supported by the CHIPS Act. The first fabrication facility is now operational and scheduled to hit high-volume production in the second half of this year.
The additional $4 billion will fund phases three and four of GlobalWafers' expansion in Sherman, where the company's sprawling 57-hectare manufacturing campus hums with activity. By the time all four phases are complete, GlobalWafers' monthly production capacity is expected to surge to over 1 million 12-inch wafers.
Hsu emphasized the company will only proceed with the new capacity expansion after securing long-term supply agreements and will not "carelessly pour money into it."
GlobalWafers aims to create a stable supply of advanced semiconductor wafers, which fuel the next-gen technologies and innovations that keep the US at the forefront of global tech trends. The announcement sets a bold goal but, as Hsu admitted, "We're not about half-measures here. We're in this for the long haul."
While no timeline for the construction of new wafer fabrication facilities has been set, the company typically waits until loading up on long-term contracts and ensuring a steady customer base before making such moves.
With the US government's continued support and Donald Trump's administration's backing, the additional investment is expected to ensure a stable, tariff-mitigated supply of advanced wafers - a win for the US semiconductor industry, chipmakers, and tech enthusiasts alike.
"GlobalWafers' investment of $4 billion into its Texas facility demonstrates a commitment to technology, as they aim to increase their monthly production capacity of 12-inch wafers to over 1 million, fueling the next-gen technologies and innovations in the US."
"The US semiconductor industry, including companies like Nvidia Corp and GlobalWafers, have pledged substantial investments amounting to $500 billion or more, highlighting a significant focus on technology to boost local chip production and secure a competitive edge."
