Title: GlobalWafers Doubles Down on US Investment, Bolstering Local Production Amid Tariff Uncertainties
By: Jack Daniels / Tech Reporter
Expansion of GlobalWafers in the United States to Increase Significantly
GlobalWafers Co., the world's third-largest silicon wafer supplier, announced an ambitious additional US$4 billion investment in the US on the opening day of its new advanced 12-inch wafer fabrication plant in Sherman, Texas. This move brings GlobalWafers' total US investment to a staggering US$7.5 billion.
During a press conference, GlobalWafers chairwoman Doris Hsu (徐秀蘭) stated, "We've witnessed fierce demands from American customers seeking our local capacity in the US. Although the product evaluation process is ongoing, those American companies have demonstrated a strong interest in securing more local capacity."
Hsu explained that these American companies aim to reduce tariff uncertainties by securing more local supply.
With this expansion, GlobalWafers intends to strengthen its foothold in the US market, a strategic move amid the burgeoning investments in the US semiconductor industry by heavyweights such as IBM, TSMC, Apple, and Nvidia.
Catering to major chipmakers, including Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), GlobalWafers supports the world's largest contract chipmaker's goal of building six wafer fabrication plants, a chip packaging facility, and a research-and-development center in the States, amounting to a colossal US$165 billion investment.
According to White House data, marquee semiconductor companies like Nvidia Corp have committed to bolstering their US investments to at least US$500 billion.
Three years ago, GlobalWafers pledged a US$3.5 billion investment to fund the first and second phases of its flagship expansion project in the US, facilitated by the CHIPS Act. The initial fabrication facility is now operational and set to commence high-volume production in the second half of this year.
The new US$4 billion investment will fund phases three and four of GlobalWafers' expansion in Sherman, where the company operates a vast 57-hectare manufacturing campus. Upon completion of all four phases, the company expects its monthly production capacity to soar to over 1 million 12-inch wafers.
"This is a bold and ambitious target, but we won't hastily pour all of the US$4 billion in. We won't make any further investment until we translate every phase of expansion into earnings or secure sufficient long-term supply agreements," Hsu added.
Although GlobalWafers hasn't set a timeline for the construction of new wafer fabrication facilities under phases three and four, the company typically proceeds with new capacity expansion only after securing long-term supply agreements, with most capacity pre-booked by customers and backed by prepayments.
This additional investment, fortified by continued support from the US government and the Trump administration, is expected to ensure a stable supply of advanced wafers essential for powering the next-generation technologies and innovations.
Sources:
- GlobalWafers Co.
- White House.
- Taiwan Semiconductor Manufacturing Co (TSMC, 台積電).
- CHIPS Act.
Insights:
- Demand for Local Production: The company's decision to invest in the US is driven by the growing demand from American customers seeking local supply chains to reduce potential uncertainties associated with tariffs on semiconductors.
- Market Growth and Competition: The expansion aims to strengthen GlobalWafers' position in the US market by increasing its production capacity, contributing to the growth of the US semiconductor sector and enhancing the competitiveness of US-based manufacturing in the global market.
- Government Support: The company is increasingly receiving government support for its US operations through initiatives like the CHIPS Act. This aid plays a crucial role in the construction and enhancement of GlobalWafers' facilities in the US.
"The American companies interested in securing more local capacity from GlobalWafers are investing to reduce tariff uncertainties, as highlighted by GlobalWafers chairwoman Doris Hsu."
"In an effort to strengthen its foothold in the US market, GlobalWafers, a key supplier for major chipmakers like TSMC, is increasing its production capacity through US investments, being supported by initiatives like the CHIPS Act."
