USA Semiconductors: GLOBALFOUNDRIES and GlobalWafers Announce Partnership

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“Semiconductors are critical to our national security and economic competitiveness,” said U.S. Sen. Roy Blunt

GLOBALFOUNDRIES (GF) and GlobalWafers (GWC) have announced an $800 million agreement to add 300mm silicon-on-insulator (SOI) wafer manufacturing and expand existing 200mm SOI wafer production at GWC’s MEMC facility in O’Fallon, Missouri.

“The kind of partnership we are announcing today with GWC is only possible thanks to Congressional leadership and the renewed national interest in growing U.S. semiconductor manufacturing capacity,” said GF CEO Tom Caulfield.

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“Semiconductors are critical to our national security and economic competitiveness,” said U.S. Sen. Roy Blunt of Missouri, an instrumental supporter of the U.S. Innovation and Competition Act.

Blunt added, “The supply chain of these computer chips is highly complex and largely dominated by other countries. We need to begin making more chips at home to protect U.S. industries from chip shortages like we have seen in recent months. Today’s announcement is good news for semiconductor manufacturing and will create steady, good-paying, high-tech jobs for Missourians.”

The announcement comes at a time when the United States is seeking to fortify and expand its semiconductor supply chain. Only 12 percent of the world’s semiconductor manufacturing capacity is in the United States. Critical to increasing the number of chips manufactured in the U.S., and making U.S. chip manufacturing more globally competitive, are federal investments like those enabled by the bipartisan-supported U.S. Innovation and Competition Act and the already passed CHIPS for America Act.

The long-term agreement includes nearly $210 million in capital expenditures to expand GWC’s MEMC facility in Missouri and will create more than 75 new jobs. The 300mm pilot line is on track to be completed in Q4 this year. The agreement is strengthened by $9.4 million in investments and support from the State of Missouri, as well as support from the City of O’Fallon, Ameren Missouri, Spire, and Greater St. Louis, Inc.

GF is investing $1.4 billion in 2021 alone to expand its manufacturing capacity, to meet the needs of customers and address the growing global demand for computer chips. As part of this growth, GF will require an increased supply of wafers like those made by GWC. GWC is one of the world’s leading manufacturers of 200mm SOI wafers and has a long and ongoing relationship with GF for supplying 200mm SOI wafers.

In February 2020, GWC and GF announced intentions to collaborate closely to significantly expand GWC’s existing 300mm SOI wafer manufacturing capacity. Today’s announcement signals a significant step forward in that collaboration.

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