The United States Secretary of Commerce has announced the completion of a $406 million agreement with the Taiwanese technology manufacturing company GlobalWafersin order to boost silicon production in the United States.
The funds will be allocated mainly to the construction of silicon plants in Texas and Missouri, and will establish the first major American production of this material, a resource of incalculable value in the production of technology and from which the mecca of American innovation is named. Silicon Valley.
Silicon is a crucial material in the manufacturing of semiconductors, one of the central elements of the trade war between China and the United States. Through this movement, the Western power manages to kill two birds with one stone. Supporting Taiwanflatly denies China’s claims to the island, which Beijing considers its historical territory. On the other hand, the US strengthens local semiconductor production, increasing US independence from China in the technological career.
About the horn
The administration Bidenled by Secretary of Commerce Gina Raimondo, had already stated on numerous occasions its intention to promote local semiconductor manufacturing. In fact, Raimondo has already announced the government’s intention to work with GlobalWafers. “They will play a crucial role in boosting the US semiconductor industry by providing a local source of silicon wafers,” Raimondo said in July.
In the last moments of their mandate, they have managed to carry out a multi-million dollar agreement to distance themselves from Chinataking another step towards leadership in a key sector such as technology.
The subsidy approved by the government will allow the creation of approximately 880 jobs in silicon factories, as well as 1,700 construction jobs for these plants. The CEO of GlobalWafers, Doris Hsuhas stated that they are “looking forward to innovating with our American customers over the coming years.”
Already in 2022, in full administration BidenGlobalWafers declared its intention to build a $5 million plant in Texas to manufacture 300-millimeter silicon wafers used in semiconductors. The Taiwanese company is part of the oligopoly of silicon wafers, controlled by five companies. Approximately 90% of these components are produced in Southeast Asia.
Through this revolutionary advancement, GlobalWafers aims to build and expand its facilities in Sherman, Texasused to produce silicon wafers needed for memory chips. Likewise, the company intends to open a new plant in St. Peters, Missouriwhich will face the task of supplying the United States defense and space departments with wafers.
Subsidies to lead the sector
This subsidy is part of the “Chips & Science Act” subsidy program, which allocated 52.7 billion of dollars to promote research and manufacturing of semiconductors in the country. In view of the transition to the mandate of trumpJoe Biden has dedicated significant efforts to finalizing the award of the grants corresponding to the program.
Last week, the Secretary of Commerce finalized a subsidy of 6,165 million dollars to the national company Micron Technologyin order to encourage semiconductor manufacturing in New York and Ohio. Among other subsidies, the US government has provided more than $7 billion to Intel6,600 to Taiwan Semiconductor Manufacturing Co.and 1.5 billion to GlobalFoundriestrying to strengthen its commercial position with respect to China in a conflict that only worsens.
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