GlobalWafers Expands Manufacturing Worldwide to Address Chip Shortages and National Security Concerns

Tuesday, 3 September 2024, 04:45

Semiconductor supply chain disruptions are prompting GlobalWafers to boost overseas manufacturing amid rising tariffs. The company, led by CEO Doris Hsu, aims to navigate geopolitical tensions impacting the chip industry. With factories planned in the US, Italy, and elsewhere, GlobalWafers seeks to secure production and mitigate risks from trade measures.
South China Morning Post
GlobalWafers Expands Manufacturing Worldwide to Address Chip Shortages and National Security Concerns

Semiconductor Supply Chain Challenges and GlobalWafers' Response

In light of escalating tariffs and mounting geopolitical tensions, GlobalWafers, the world's third-largest silicone wafer manufacturer, is strategically expanding production locations.

Manufacturing Expansion and National Security Implications

Doris Hsu, CEO of GlobalWafers, noted during a recent interview that the industry is increasingly viewed through the lens of national security. The past chip shortages have drawn attention to the semiconductor supply chain as more than just an economic issue; it is now a critical component of national stability. The company is set to initiate factory projects in six countries, including the US and Italy, not only to enhance production capacity but also to potentially avoid impacts from future tariffs.

Government Support in Expanding Production

  • Secured up to €103 million from the European Commission for a facility in Italy.
  • Received a significant $400 million from the US Chips Act for expansions in Texas and Missouri.

These governmental supports underscore the importance of local production in mitigating risks associated with the semiconductor supply chain.

The Shift Away from Cross-Border M&A

The potential acquisition of German rival Siltronic AG highlighted the changing landscape and challenges of cross-border mergers and acquisitions. Despite difficulties in pursuing such strategies going forward, GlobalWafers aims to invest more heavily in local operations.


This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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