GlobalWafers Shores Up $406 Million in US Chips Act Awards

(Bloomberg) -- GlobalWafers Co., a Taiwanese maker of silicon wafers used in chip manufacturing, finalized a deal to receive as much as $406 million in awards from the US Chips and Science Act to help build factories in Texas and Missouri.

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The agreement, announced by the US Commerce Department, shores up a preliminary accord announced in July. The department will dole out the funds based on GlobalWafers reaching certain milestones, according to a statement Tuesday.

“The semiconductor wafers that will be produced here in the US because of this investment in GlobalWafers are the foundation of the advanced chips that will help us out-innovate and out-compete the rest of the world,” Secretary of Commerce Gina Raimondo said in the statement. The investment will help “strengthen our supply chains, protect our national and economic security, and create an estimated over 2,000 jobs across Texas and Missouri.”

The Chips Act, a landmark policy of the Biden-Harris administration, is meant to lure chip production back to the US after decades of it shifting to Asia. GlobalWafers plans to invest a total of nearly $4 billion on the US projects. Other Chips Act recipients include Intel Corp., Micron Technology Inc., Taiwan Semiconductor Manufacturing Co. and Samsung Electronics Co.

--With assistance from Mackenzie Hawkins.

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