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With an investment of $5 billion, GlobalWafers, the world's third largest silicon wafer fab, disclosed plans to build a factory in the United States

06/28/2022 GlobalWafers US builds factory, fab, chip factory, chip

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(The picture comes from the Internet)


  GlobalWafers, the world's third-largest silicon wafer producer, announced on June 27 that it will build a wafer fab in Sherman County, Texas, and is expected to start production in 2025.


  According to the announcement, the 300mm (12-inch) fab is also the first new fab of its kind in the United States in nearly 20 years, with an initial investment of $2 billion. Texas Gov. Greg Abbott expects the new fab to generate $5 billion in investment over several years, including subsidies for the chip industry being negotiated in Congress.


  GlobalWafers estimates that the current wafer production capacity in the United States will only meet about 20% of the demand by 2025. The tight supply situation will be further exacerbated as the new plants currently planned by TSMC, Samsung and Intel require higher wafers. However, with the production capacity of the new fab in Texas eventually reaching 1.2 million pieces per month, all planned chip factories do not need to worry about local wafer supply when they are put into production.


  Xu Xiulan, chairman and CEO of GlobalWafers, said in an interview with the media that the company has placed an order to purchase the machinery and equipment needed for the Texas factory, but due to the shortage of parts, the waiting period for chip manufacturing equipment is still very long.


  Regarding the impact of the decline in consumer electronics demand, Xu Xiulan disclosed that the contract prices of wafer supply for all the company's long-term customers have increased. Earlier Sumco also confirmed that renewed orders this year will face a 30% price increase, mainly due to rising raw material prices.


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