The Trump administration recently created a stir by considering alterations to the CHIPS and Science Act, a move that could potentially impact tech giants such as TSMC and GlobalWafers due to possible funding delays. Despite these uncertainties, GlobalWafers remains steady on its strategic path. Chairperson Doris Hsu reassured stakeholders that the secured funding of $406 million remains unchanged. Presently, no funds have been dispersed, but the US Department of Commerce intends to provide them incrementally, corresponding to project milestones achieved over the coming years.
As GlobalWafers nears its first milestone, it plans to submit its grant application imminently. Upon approval, these funds are expected to invigorate cash flow and enhance financial performance. Hsu has indicated that while the company might reconsider future investments in the United States if there are any tweaks to the CHIPS Act, for now, the current construction plans are moving forward as scheduled.
Earlier, a federal freeze was ordered on January 27, 2025, temporarily pausing the $52 billion semiconductor incentive program initiated by former President Trump. However, this action was declared illegal by a federal judge, compelling the White House to revoke the freeze decisively.
Even with the uncertainty surrounding reciprocal tariff measures proposed by Trump, Hsu suggested the impact on GlobalWafers would likely be minimal. Notably, the company is a steadfast supporter of US efforts to bolster semiconductor manufacturing, as evidenced by its establishment of the nation’s first domestic factories for 12-inch silicon wafers and Silicon-On-Insulator (SOI) wafers.
The funding GlobalWafers secured aligns with a $4 billion investment strategy aimed at cutting-edge semiconductor wafer production facilities in Sherman, Texas, and St. Peters, Missouri. The US government’s financial contribution constitutes roughly 35% of this ambitious investment plan.
According to Hsu, US-based facilities offer strategic advantages such as localized services, reduced shipping costs, and decreased tariff pressures, all while contributing to a lower carbon footprint. Although operating expenses in the US are higher than in Taiwan, savings are achieved through lower electricity costs.
The primary financial challenge lies in the heightened depreciation expenses associated with the US plants compared to those in Taiwan and other Asian nations. Nevertheless, anticipated grant funding is expected to expedite a reduction in these expenses more rapidly than what is typically seen in Asian manufacturing hubs.
Under the CHIPS Act expansion initiatives, GlobalWafers has unveiled four major projects. In Sherman, Texas, the company plans to become the US’s inaugural mass producer of 12-inch advanced process silicon wafers by early 2025. These wafers are pivotal for foundries and Integrated Device Manufacturers (IDMs) across both advanced and mature process nodes, including memory chips.
Similarly, MEMC in St. Peters, Missouri, will focus on producing 12-inch Silicon-On-Insulator wafers, celebrated for their enhanced performance in extreme environments—a critical factor for defense and aerospace applications. The ambitious expansion is projected to yield over 800 permanent jobs in Texas and Missouri upon full operation, in addition to creating approximately 1,700 construction roles during development.
Aside from direct subsidies provided by the US Department of Commerce, GlobalWafers plans to seek benefits from the Advanced Manufacturing Investment Tax Credit (AMIC). This tax incentive, available through the US Treasury, aims to offset taxes on qualifying expenses at the GWA and MEMC LLC sites, with the potential for a tax credit of up to 25%.
