GlobalWafers to spend additional $4B on US manufacturing
This story was originally published on Manufacturing Dive. To receive daily news and insights, subscribe to our free daily Manufacturing Dive newsletter.
GlobalWafers Co. plans to spend an additional $4 billion on its U.S. manufacturing operations, the semiconductor maker announced Thursday at its 300mm silicon wafer manufacturing facility opening in Sherman, Texas.
The funding includes growing its 142-acre Sherman campus, which provides space for the Taiwan-based company to increase capacity and keep up with other chip producers that have recently announced over $1 trillion in U.S. investments, such as IBM, TSMC, Apple and Nvidia.
The Sherman facility's initial investment was $3.5 billion, and will serve as the flagship for GlobalWafers America. The site is also the company's largest silicon wafer facility, according to its website. As of Friday, the Sherman project created 1,200 construction and 180 permanent jobs, with plans to hire up to 650 engineering, technical and operational employees by the end of 2028, the company said in the release.
The GlobalWafers' Texas facility is also a recipient of $406 million through CHIPS and Science Act funding. The company is one of the lucky few to inalize its funding contract before former President Joe Biden left the White House.
The money will also go toward GlobalWafers' other U.S. facility in St. Peters, Missouri, operated through its subsidiary MEMC, which will produce 300mm silicon-on-insulator wafers.
The 300mm wafers are critical for making semiconductors used in home appliances, automobiles, computers, cell phones and artificial intelligence technologies. The polished and epitaxial wafers eliminate surface contamination and improve the electronic devices' performance.
Recommended Reading
$400M in CHIPS funding goes to GlobalWafers
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
News24
12 minutes ago
- News24
Huawei chips are one generation behind US, but ‘no need to worry', says CEO
Huawei Technologies' chips are one generation behind those of US peers but the firm is finding ways to improve performance through methods such as cluster computing, Chinese state media quoted CEO Ren Zhengfei as saying on Tuesday. The chipmaker invests 180 billion yuan (R444 billion) in research annually and sees promise in compound chips - chips made from multiple elements - Ren said in an interview with the People's Daily newspaper of the governing Communist Party. There is "no need to worry about the chip problem", Ren said, addressing concerns stemming from US export controls. The article, published on the front page of the newspaper, come as top US and Chinese officials are set to resume trade talks for a second day in London where topics such US tech restrictions on China are expected to be discussed. Since 2019, a slew of US export curbs, aimed at curbing China's technological and military advancements, have restricted Huawei and other Chinese firms from accessing high-end chips and the equipment needed to produce them from abroad. Ren's comments are the first ever from him or Huawei about the company's advanced chipmaking efforts, which have become a flashpoint in US-China tensions. Huawei is just one of many Chinese chipmakers, Ren said in the interview, adding: "The United States has exaggerated Huawei's achievements. Huawei is not that great. We have to work hard to reach their evaluation." "Our single chip is still behind the US by a generation. We use mathematics to supplement physics, non-Moore's law to supplement Moore's law and cluster computing to supplement single chips and the results can also achieve practical conditions. Software is not a bottleneck for us," he said. Cluster computing is when multiple computers work together. Moore's law refers to the speed of chip advancement. Huawei's Ascend series of AI chips compete in China with offerings from Nvidia, the global leader in AI chips. The US commerce department last month said the use of Ascend chips would be a violation of export controls. Nvidia's AI chips are more powerful than Huawei's but the company has been barred by Washington from selling its most sophisticated chips to China, causing it to lose significant market share to Huawei. In April, Huawei launched "AI CloudMatrix 384", a system that links 384 Ascend 910C chips in a cluster that companies can use to train AI models, which has been described by analysts as able to outperform Nvidia's GB200 NVL72 system on some metrics. Dylan Patel, founder of semiconductor research group SemiAnalysis, said in an article that month that it meant that Huawei and China now had AI system capabilities that could beat Nvidia. Nvidia and the US commerce department did not immediately respond to a request for comment on Ren's remarks. Ren also said about a third of Huawei's annual research spending went to theoretical research while the rest was spent on product research and development. "Without theory, there will be no breakthroughs, and we will not catch up with the United States."
CNET
22 minutes ago
- CNET
Mortgage Rates Go Down Over the Last Week: Today's Mortgage Rates for June 10, 2025
Check out CNET Money's weekly mortgage rate forecast for a more in-depth look at what's next for Fed rate cuts, labor data and inflation. Despite forecasts of gradually falling mortgage rates, the housing market remains largely unaffordable for most prospective buyers. The average 30-year fixed rate has remained close to 7% for the last seven months, leading to cost-prohibitive monthly payments. The average interest rate for a standard 30-year fixed mortgage is 6.90% today, a decrease of -0.07% compared to one week ago. The average rate for a 15-year fixed mortgage is 6.11%, which is a decrease of -0.05% since last week. Further compounding the financial pressure on borrowers are high home prices and the skyrocketing cost of ownership due insurance and property taxes. Median family income has not kept pace with the surge in housing costs, requiring many households to earn double or triple their salary to afford a modest home in some cities. Meanwhile, the "lock-in" effect, where current homeowners with low-rate mortgages are reluctant to sell and take on higher interest rates, has kept housing inventory tight and fueled price competition in high-demand areas. Even if an economic slowdown compels the Federal Reserve to cut interest rates later this year, it's unlikely to alleviate the burden on buyers in an overheated market. A potential job-loss recession is also making more households cut back budgets and take on less financial risk. When mortgage rates start to fall, be ready to take advantage. Experts recommend shopping around and comparing multiple offers to get the lowest rate. Enter your information here to get a custom quote from one of CNET's partner lenders. About these rates: Bankrate's tool features rates from partner lenders that you can use when comparing multiple mortgage rates. What's behind today's high mortgage rates? The last few months have seen mortgage rates navigate a bumpy course. Persistent inflation, the looming threat of a global trade war and escalating recession fears have all contributed to an uncertain economic outlook. As a result, the Fed has adopted a wait-and-see approach when it comes to interest rate adjustments. After cutting borrowing costs three times last year, the central bank is keeping borrowing costs at their current range so far in 2025. Experts predict the Fed will hold rates steady again at its upcoming meeting on June 17-18. If President Trump eases some of his aggressive tariff measures or if the labor market deteriorates, it could prompt the Fed to resume easing interest rates in the fall, which would put downward pressure on bond yields and mortgage rates. Still, experts warn of a lot more volatility in the market. As a result, buyers are being more patient and strategic about financing, comparing different loan types and planning ahead. "Some are waiting, others are getting pre-approved now so they're ready to act if rates fall," said Jeb Smith, licensed real estate agent and member of CNET Money's expert review board. For a look at mortgage rate movement in recent years, see the chart below. Mortgage predictions for 2025 Despite hopes that 2025 would bring relief to the housing market, concerns over a potential recession and uncertain trade policies have kept longer-term bond yields and mortgage rates high. Mortgage rates are closely tied to the bond market, specifically the 10-year Treasury yield, which is sensitive to investors' expectations for inflation, labor data, changes to monetary policy and global measures like tariffs. "Rates could fall if inflation keeps cooling and the labor market softens," said Smith. "On the other hand, tariffs could create new inflation pressure. Add in government deficits and increased bond supply, and that puts upward pressure on rates." In short, it will be difficult for mortgage rates to drop below 6% without the risk of a job-loss recession. Fannie Mae now expects rates around 6.1% by the end of 2025 and 5.8% by the end of 2026. According to Smith, mortgage rates could move lower slowly and steadily, but numerous risks could keep rates elevated. Which mortgage term and type should I pick? Each mortgage has a loan term, or payment schedule. The most common mortgage terms are 15 and 30 years, although 10-, 20- and 40-year mortgages also exist. With a fixed-rate mortgage, the interest rate is set for the duration of the loan, offering stability. With an adjustable-rate mortgage, the interest rate is only fixed for a certain amount of time (commonly five, seven or 10 years), after which the rate adjusts annually based on the market. Fixed-rate mortgages are a better option if you plan to live in a home in the long term, but adjustable-rate mortgages may offer lower interest rates upfront. 30-year fixed-rate mortgages The average interest rate for a standard 30-year fixed mortgage is 6.90% today. A 30-year fixed mortgage is the most common loan term. It will often have a higher interest rate than a 15-year mortgage, but you'll have a lower monthly payment. 15-year fixed-rate mortgages Today, the average rate for a 15-year, fixed mortgage is 6.11%. Though you'll have a bigger monthly payment than a 30-year fixed mortgage, a 15-year loan usually comes with a lower interest rate, allowing you to pay less interest in the long run and pay off your mortgage sooner. 5/1 adjustable-rate mortgages A 5/1 adjustable-rate mortgage has an average rate of 6.16% today. You'll typically get a lower introductory interest rate with a 5/1 ARM in the first five years of the mortgage. But you could pay more after that period, depending on how the rate adjusts annually. If you plan to sell or refinance your house within five years, an ARM could be a good option. Calculate your monthly mortgage payment Getting a mortgage should always depend on your financial situation and long-term goals. The most important thing is to make a budget and try to stay within your means. CNET's mortgage calculator below can help homebuyers prepare for monthly mortgage payments. Where can I find the best mortgage rates? Though mortgage rates and home prices are high, the housing market won't be unaffordable forever. It's always a good time to save for a down payment and improve your credit score to help you secure a competitive mortgage rate when the time is right. Save for a bigger down payment: Though a 20% down payment isn't required, a larger upfront payment means taking out a smaller mortgage, which will help you save in interest. Boost your credit score: You can qualify for a conventional mortgage with a 620 credit score, but a higher score of at least 740 will get you better rates. Pay off debt: Experts recommend a debt-to-income ratio of 36% or less to help you qualify for the best rates. Not carrying other debt will put you in a better position to handle your monthly payments. Research loans and assistance: Government-sponsored loans have more flexible borrowing requirements than conventional loans. Some government-sponsored or private programs can also help with your down payment and closing costs. Shop around for lenders: Researching and comparing multiple loan offers from different lenders can help you secure the lowest mortgage rate for your situation.
CNN
23 minutes ago
- CNN
The rare earths problem: Why it could soon be more difficult to get a car, electronics or even an MRI
Call it a 'chip shortage on steroids.' That's how one expert told CNN the auto industry is describing a possible shortage of rare earth elements — minerals that are now center stage in the global trade war. Running low on those minerals could recall the pandemic-era chip shortage that jacked up car prices, used and new, across America. China has a virtual monopoly on those 17 metallic elements, which are critical components to everyday products from cars to jet engines to electronics like smartphones and flat-screen TVs. They're even crucial for the contrast dye used in MRI machines and some cancer drugs. And, recently, China made it even harder to get them: The country introduced a new licensing requirement on the export of the elements in April, effectively slowing the flow of outbound shipments to most of the world, including the United States. Delegations from the US and China are meeting in London this week to talk about a new trade deal, and rare earths are almost certainly a major part of those discussions. Right now, US companies have only about two or three months' worth of supply, according to Gracelin Baskaran, director of the Critical Minerals Security Program at the Center for Strategic and International Studies. After that, 'industry simply could not manufacture' unless an agreement is reached between the US and China, she told CNN. President Donald Trump told reporters Friday that Chinese President Xi Jinping had agreed to allow exports of rare earth minerals products to begin. But even that promise might not be enough for US manufacturers if a new deal only lifts the restrictions temporarily, said Baskaran. 'It makes it extremely difficult for industry to get a reliable read on what the next three months, six months or a year are going to look like,' she said. Nor might exports flow fast enough compared to past levels. 'Keep in mind that prior to the (Trump-Xi) call, they were beginning to flow out, but not at the pace that allows supply chains to continue without interruptions,' she added. US companies might soon burn through stockpiled inventory, according to Baskaran. One auto industry expert, who asked not to be identified because they aren't authorized to speak publicly, told CNN it is becoming apparent that the auto industry is prepping for widespread shutdowns in the coming months due to rare earth shortages. It's something the expert has heard described by people in the industry as 'the chip shortage on steroids.' Four years ago, a shortage of computer chips caused halts in auto production, which fueled record car prices. The limited supply drove most people to pay above sticker price for new cars. 'People think that it's only EVs (electric vehicles), but it's not,' the expert told CNN. 'It's in everything in every car. It's in the motors that run windshield wipers. One supplier I'm talking to said there are sensors in seat belts. I think there's going to be production disruptions all over the place. China really has our balls in a vise.' Ford already had to shut down production at the Chicago plant that builds the Explorer for a week, according to Baskaran. Ford would neither confirm nor deny the shutdown was caused by a rare earth shortage. Reuters, citing sources with knowledge of the situation, reported that suppliers of major American carmakers – including General Motors, Ford and Jeep-maker Stellantis – were granted temporary export licenses for rare earths, but only for a period of up to six months. The companies would not comment on their supplies of the minerals. With rare earths so critical to important US industries, there are efforts to find replacements, such as other types of magnets and electric motors that don't use magnets at all, said Roderick Eggert, a professor at the Colorado School of Mines and deputy director of the Critical Materials Innovation Hub, a research consortium established by the Department of Energy. But Eggert said those alternatives all have shortcomings. 'These substitutes come at the cost of performance,' he said. 'Motor designs that don't use magnets at all, those tend to be less efficient.' He said that the only hope to avoid significant disruptions is that the China and US reach an agreement that will restore the normal flow of rare earths. 'It is in the interest of the Chinese to remain a stable and trusted source for rare earths magnets and other rare earths products,' Eggert said. 'Unfortunately, what has happened is that rare earths have gotten caught up in much larger tensions associated with US-China trade negotiations.' The name rare earths is a bit of a misnomer. The materials are found throughout the Earth's crust but are difficult and costly to extract and process. China has the only equipment needed to process some of the various elements and currently controls 92% of the global output in the processing stage. Other countries, including the United States, are rushing to create their own processing capabilities. But that will take months, if not years. Baskaran said more should have been done to prepare for this scenario in advance. 'Of course we should have seen this coming,' she said. 'We should have started this 15 years ago.'
