Reports indicate that the Trump administration is considering revising incentive agreements under the CHIPS and Science Act (commonly referred to as the 'CHIPS Act'), potentially affecting TSMC and GlobalWafers through delays in upcoming funding timelines.
GlobalWafers Chairperson Doris Hsu confirmed that the current funding status remains unchanged at US$406 million. No funds have been received yet, as the US Department of Commerce will distribute them over several years based on project milestone completion.
According to Hsu, the company is approaching its first milestone, after which it will submit its grant application. Upon approval, the funds should strengthen both cash flow and financial reports.
Hsu added that while GlobalWafers would reassess its future US investments if the CHIPS Act undergoes modifications, current construction plans remain unchanged.
On January 27, 2025, Trump ordered a "freeze" on federal funding, directly impacting the US$52 billion semiconductor incentive program. A federal judge later ruled this action illegal, prompting the White House to withdraw the freeze order within days.
Regarding Trump's proposed reciprocal tariff measures, Hsu indicated that while the full impact remains unclear, such policies would likely have minimal effect on GlobalWafers.
The company continues to support the US government's semiconductor manufacturing objectives by establishing the country's first domestic 12-inch silicon wafer factory and 12-inch SOI plant.
GlobalWafers has secured US$406 million in direct funding to support a US$4 billion investment plan for advanced semiconductor wafer factories in Sherman, Texas, and St. Peters, Missouri. The US government contribution represents approximately 35% of the total investment.
US facility advantages include local service provision, reduced shipping costs, lower tariff pressures, and a smaller carbon footprint, Hsu explained. While operational costs in the US exceed those in Taiwan, electricity rates are significantly lower.
The primary cost difference lies in higher depreciation expenses for US plants compared to facilities in Taiwan and other Asian locations. However, grant reception should accelerate depreciation expense reduction beyond Asian facility rates.
CHIPS Act expansion plans
The expansion plans supported by CHIPS Act subsidies comprise four main projects:
In Sherman, Texas, GWA will become the first US manufacturer to mass-produce 12-inch advanced process silicon wafers starting in the first half of 2025. These essential materials serve foundries and Integrated Device Manufacturers (IDMs) for both advanced and mature process nodes, as well as memory chips.
In St. Peters, Missouri, MEMC will produce 12-inch Silicon-On-Insulator (SOI) wafers in the first half of 2025. These wafers enhance performance in harsh environments and are commonly used in defense and aerospace applications.
The new facilities will create over 800 permanent jobs in Texas and Missouri once fully operational. Currently, the expansion plans have generated approximately 1,700 construction job opportunities.
Beyond direct subsidies from the US Department of Commerce, GlobalWafers will pursue the Advanced Manufacturing Investment Tax Credit (AMIC) from the US Treasury. This credit can offset taxes on eligible expenditures at GWA and MEMC LLC sites, with a maximum credit rate of 25%.
