$400M allocated to boost 'critical' U.S. production of semiconductor wafers

July 17 (UPI) -- Two U.S. tech firms soon could build manufacturing facilities to produce 300mm silicon wafers that are critical to advancing the nation's global technology leadership, thanks to a $400M investment announced by the White House on Wednesday.

The U.S. Department of Commerce officials on Wednesday announced a $400 million investment through the CHIPS and Science Act that would establish domestic production of the semiconductor chips in Texas and Missouri.

The proposed investment would support building U.S.-based manufacturing facilities for the semiconductor wafers in the two states and "usher in a new era of semiconductor manufacturing in the United States."

" President [Joe] Biden is restoring our leadership in the entire semiconductor supply chain, from materials to manufacturing to R&D," Secretary of Commerce Gina Raimondo said.

Silicon wafers are critical for semiconductors, officials say, pointing out that there are five main companies that currently hold more than 80% of the global 300mm silicon wafer manufacturing market and about 90% of today's silicon wafers come from East Asia.

Manufacturing firm GlobalWafers and its subsidiaries "will play a crucial role in bolstering America's semiconductor supply chain by providing a domestic source for silicon wafers that are the backbone of advanced chips," Raimondo said.

The proposed project in Texas and Missouri would generate about $4 billion in combined capital expenditures to build the manufacturing plants in the two states.

Raimondo said those manufacturing facilities would secure the nation's supply chains for semiconductor wafers, which is a very thin layer of semiconductor materials used to create integrated circuits in electronic components.

The wafers enable the construction of microcircuits that are free of impurities, like aluminum, boron and iron.

Those microcircuits enable the production of a variety of electronic devices of all sizes.

Raimondo estimated the $400 million infusion from the federal government will support the creation of 2,000 jobs in Texas and Missouri while lowering the cost of producing electronic devices using semiconductor chips.

The domestic production of semiconductors also improve"economic and national security for Americans," she said.

Biden in 2022 announced the importance of the CHIPS and Science Act that would provide $52 billion in federal funding for domestic production of semiconductor wafers and chips that would bolster national and economic security.

Domestic production helps ensure no one can tamper with "any part we're putting in a weapons system, or a helicopter - anything we have," Biden said.

"That it's made in America, built in America, stockpiled in America, I think it's really important," he added.

Sec. of State Antony Blinken on Tuesday also announced the United States and Mexico will co-host the America's Partnership Semiconductor Symposium: Expanding the Supplier Ecosystem in September.

The event is scheduled Sept. 5-6 in Mexico City and will focus on expanding and diversifying the assembly, testing and packaging of semiconductors for the 12 nations participating in the America's Partnership for Economic Prosperity.