Corporations expand Missouri semiconductor wafer supply

(JEFFERSON CITY, MO) – GlobalFoundries (GF), the global leader in feature-rich semiconductor manufacturing, and GlobalWafers Co., Ltd. (GWC), one of the top silicon wafer manufacturers in the world, today announced an $800 million agreement to expand wafer manufacturing and  existing  wafer production at the GWC facility in O’Fallon, Missouri.

“We’re proud to see a Missouri business step up to address the critical semiconductor need we are seeing in countless industries all across our state and nation,” said Governor Mike Parson. “[The] expansion will strengthen the global semiconductor supply chain, promote American manufacturing, and support good-paying jobs right here in Missouri.”

The silicon wafers produced by GWC are key input materials for semiconductors and an integral part of GF’s supply chain. The wafers are used in GF’s multi-billion dollar manufacturing facilities, or fabs, where they are used to manufacture the computer chips that are pervasive and vital to the global economy. Today’s announcement expands GF’s domestic silicon wafer supply from the United States.

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.

Today’s announcement comes at a time when the United States is seeking to fortify and expand its semiconductor supply chain, which enables the $91 trillion world economy. 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.

“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. “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.”

“As a trusted semiconductor manufacturer and supplier to the U.S. government, and the world leader in RF semiconductor technology, GF has been leading the charge to accelerate U.S. semiconductor manufacturing and boost our capacity to meet the growing global demand for chips,” said GF CEO Tom Caulfield. “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..”

GF employs more than 7,000 people across the U.S. Over the past 12 years the company has invested $15 billion in U.S. semiconductor development, and it is doubling its planned investment in 2021 to expand global capacity and support growing demand from the U.S. government and industry customers for secure processing and connectivity applications.

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