Why Micron Chose GlobalWafers for $500m US Wafer Supply

Micron Technologies has announced a US$3bn investment into the US semiconductor supply chain, including US$500m to support GlobalWafers' facility in Sherman, Texas. 

The companies will also enter a 10 year supply agreement, giving Micron access to raw silicon wafer capacity.

Semiconductor supply chains remain highly vulnerable, with factors like concentrated geographic production, fragile upstream sources and enormous demand for AI chips. 

More than US$640bn has been invested in semiconductor projects in the US since 2020, according to the Semiconductor Industry Association (SIA).

"Securing a reliable supply of critical input materials is essential to supporting Micron’s long-term growth and technology roadmap," says Ben Tessone, Senior Vice President and Chief Procurement Officer at Micron Technology. 

"Micron’s strategic investment in the US semiconductor ecosystem and GlobalWafers' raw silicon wafer manufacturing facility reflects our commitment to strengthening supply assurance, deepening collaboration with key suppliers and supporting the expansion of the semiconductor supply chain and manufacturing infrastructure in the United States.

"Together, these efforts help build a more resilient supply chain that can support future innovation and growing demand for advanced memory solutions."

GlobalWafers in Texas

Taiwanese semiconductor business GlobalWafers established GlobalWafers America (GWA) as a subsidiary in 2022 to support the construction and operation of its US$3.5bn Sherman, Texas facility. 

The plant began operations in May 2025 and is the only raw wafer supplier participating in the CHIPS for America Program that produces 300mm wafers in the US. 

Larger wafers are often used in advanced chip production, allowing for more chips to be made per wafer and thus saving costs. 

Doris Hsu, Chairperson and CEO of GlobalWafers, says: "We are honoured to deepen our long-term strategic collaboration with Micron, jointly supporting the growth in advanced memory demand in the AI era and the stable supply of critical materials for the semiconductor industry.

"Looking ahead, GlobalWafers will continue to uphold a customer-oriented approach and long-term partnership mindset, working together with global industry partners to promote the stable development of the semiconductor supply chain."

At the facility's official opening last year, Doris said in a press briefing that the company is preparing for an additional US$4bn investment and second phase expansion of the plant, subject to customer commitments. 

The US chip supply chain

Before 2022, the US was primarily home to the profitable R&D-intensive stages of chipmaking like electronic design automation, IP and design and advanced manufacturing equipment. 

The fabrication of chips and assembly, test and packaging were both heavily offshored. The US share of global fab capacity fell to just 10% by 2022, down from 37% in 1990, according to the SIA. 

Most components needed for chips, like silicon wafers, were concentrated in East Asia, leaving the US exposed to geopolitical tensions and logistics issues. 

The CHIPS and Science Act was passed in 2022, providing a range of investments including US$39bn in manufacturing grants and subsidies plus a 25% investment tax credit to build fabs on US soil. 

A range of investments that take advantage of these incentives have been announced since, including Micron's US$100bn New York "megafab", two memory manufacturing fabs in Idaho and expansion of its existing domestic facilities.