GlobalWafers, a Taiwanese tech manufacturing firm, has announced plans to spend $5 billion on a new plant in Texas after the deal with Germany's Siltronic did not go through.
The new plant is expected to manufacture silicon wafers majorly utilized in semiconductors. As per the company the plant will begin construction by the end of this year and will generate over 1,500 jobs in Sherman, Texas.
Explaining the reason behind approaching the US, the CEO and chairwoman of the Taiwanese company said that the global chips shortage and the current geopolitical concerns were among the major contributing factors.
She added that the plan is to focus on addressing the flexibility issues of the American semiconductor supply chain, with the help of an "advanced node" 300-milimeter silicon wafer factory, South China Morning Post reported.
"Instead of importing wafers from Asia, GlobalWafers USA (GWA) will produce and supply wafers locally," she said, mentioning further that the investment will be completed in a "phase by phase" format dependent on the actual customer demand.
According to US News, the move was welcomed by the US government with open arms as it has reiterated on numerous occasions the importance of foreign tech firms manufacturing in the country. As per US Secretary of Commerce Gina Raimondo it would not only boost the economy but also strengthen the national security.
The Taiwanese tech company had previously obtained a major stake in Munich-based Siltronic and was expecting the deal to b concluded by the end of 2021.
Unfortunately, the acquisition failed as Germany's Federal Ministry Of Economic Affairs announced that it was 'not possible' to go through the entire investment review, especially one of an antitrust approval granted in January of 2021 by China.
If this transaction was wrapped up last year, GlobalWafers would have developed the second-largest manufacturer of silicon wafers, after Shin-Etsu Chemical Co. of Japan.