In a strategic move to mitigate potential tariff impacts, GlobalWafers, the world's third-largest silicon wafer provider, is ramping up its chip-making capacity by expanding factories in the United States and Europe. CEO Doris Hsu has expressed concerns over the possibility of 'special tariffs' that could significantly affect the semiconductor industry. As part of this expansion, GlobalWafers is enhancing operations in six of its nine countries, including two factories in the US, one in Italy, and another in Denmark [b758e9ed].
This decision comes as the company seeks to avoid tariffs by increasing local production capabilities. Previously, GlobalWafers attempted to acquire Siltronic AG for $5 billion in 2022, but the deal fell through due to regulatory challenges. Since then, the company has shifted its focus from mergers and acquisitions to organic growth and expansion [b758e9ed].
In support of its expansion efforts, GlobalWafers secured €103 million (approximately $114 million) from the European Commission for a new plant in Italy and received $400 million from the US Chips Act for its projects in Texas and Missouri, which are expected to create around 2,500 jobs [b758e9ed]. This expansion is particularly crucial as the company is recovering from a downturn in consumer electronics and automotive sales, having lost half of its market value since 2021 [b758e9ed].
The broader context of these developments ties back to ongoing geopolitical tensions surrounding semiconductor production. The semiconductor industry has become a critical battleground in US-China relations, with Taiwan's strategic position as a leading chip producer making it a focal point of global supply chain discussions. As companies like GlobalWafers adapt to these challenges, the implications for the semiconductor landscape continue to evolve [7aa87b09].
The ongoing efforts by the US to bolster domestic chip manufacturing through initiatives like the CHIPS Act are part of a larger strategy to reduce reliance on foreign suppliers, particularly in light of the risks posed by potential conflicts in the Taiwan Strait [27c62a15]. As the situation unfolds, the interplay between tariff policies, domestic production, and international relations will significantly shape the future of the semiconductor industry [4371a71d].