globalwafers secures $200 million boost for us chip expansion

2025-08-08 general

washington, Friday, 8 August 2025.
globalwafers, a taiwan-based silicon manufacturer, has received over $200 million in funding from the us chips act. This substantial subsidy, approximately half of the total grant secured last year, will fuel the company’s expansion within the united states. The chips act aims to strengthen domestic semiconductor production. This funding alleviates concerns about potential obstruction from previous administrations. The company will also partner with Apple to supply 300 mm silicon wafers from its Texas facility.

chips act funding details

The $200 million subsidy is part of a larger $406 million package the Biden administration announced in December of last year [1][2]. These funds support GlobalWafers’ projects in Texas and Missouri, significantly expanding silicon wafer production in the United States [2]. While the Trump administration had expressed reservations about the subsidies, the current disbursement indicates a continued commitment to the CHIPS Act’s goals [2]. GlobalWafers’ chairman, Hsu Hsiu-lan, indicated that if US demand continues to grow, they would consider accelerating the next phase of expansion [1][2].

market reaction and stock performance

News of the CHIPS Act funding and the partnership with Apple have positively impacted GlobalWafers’ stock [6]. On August 7, 2025, the company’s stock price surged to the daily limit following the announcement of its US subsidiary entering Apple’s supply chain [6]. This surge reflects investor confidence in GlobalWafers’ growth potential and its strategic alignment with key industry players [6]. The company’s new wafer plant in Sherman, Texas, which opened in May with a $3.5 billion investment, is now a critical asset [1].

financial performance and outlook

GlobalWafers has demonstrated solid financial performance, reporting a second-quarter net profit of NT$1.68 billion, a 15.862 15.5% increase compared to the previous quarter [6]. The second-quarter revenue reached NT$16.01 billion, a 2.694 2.7% increase quarter-on-quarter and a 4.504 4.5% increase year-on-year [6]. Earnings per share for the second quarter stood at NT$3.52, with first-half EPS reaching NT$6.56 [6]. The company anticipates that its 2025 revenue in US dollars will surpass 2024 levels, with further growth expected in 2026 [6].

strategic implications and future growth

GlobalWafers’ expansion in the US is strategically important, aligning with the global trend of localized supply chains [5]. Chairman Hsu Hsiu-lan noted that local production offers advantages amid global tariff challenges, suggesting that customers in high-demand countries prioritize local suppliers [5]. With over 80% of the new US plant’s production capacity already under contract, the company is well-positioned to capitalize on growing US demand [6]. This expansion, supported by the CHIPS Act funding and the Apple partnership, enhances GlobalWafers’ long-term growth prospects and strengthens its position in the semiconductor industry [1][6].

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