GlobalWafers Builds $5 Billion Chip Plant in the US

GlobalWafers, one of the world’s largest suppliers of wafers (silicone disc plate) in chip manufacturing, has announced that it will establish a factory in Texas. The semiconductor manufacturer will invest $5 billion in the US to serve Intel, Samsung and TSMC.

The new plant in Sherman, Texas will be built in multiple stages with production volumes reaching 1.2 million 300mm silicon wafers per month. The company said the new chip manufacturing facility will be one of the largest in the US as well as in the world.

GlobalWafers will begin building the new factory later this year, with first production expected in 2025. The company currently has a semiconductor manufacturing facility in Missouri, but it’s much smaller than the facility that will be built in the coming years.

Many chip manufacturers (GlobalFoundries, Intel, Samsung Foundry, Texas Instruments, and TSMC) manufacturing in the USA have expanded into the United States due to various issues in the Taiwan and South Korea-based supply chain. But it is not enough to have new factories to support local chip production and localization of the entire supply chain is necessary.

For example, most wafer substrates are produced in Asia, while Japan leads the industry with high purity gases and other materials. Naturally, importing them from overseas to the US is expensive and further complicates the supply chain.

Intel, GlobalFoundries, Samsung and Texas Instruments operate enormous factories in the USA. These companies already have local suppliers, but the new factories they build require more wafer substrate and more raw materials.

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