GLOBALFOUNDRIES, the global leader in feature-rich semiconductor manufacturing, and GlobalWafers Co., Ltd., one of the top silicon wafer manufacturers in the world, signed an $800 million agreement to add 300mm silicon-on-insulator wafer manufacturing and expand existing 200mm SOI wafer production in O'Fallon, Missouri.

The long-term agreement includes nearly $210 million in capital expenditures to expand GWC's MEMC facility, creating more than 75 new jobs. The 300mm pilot line is on track to be completed in Q4 this year.

"As a trusted semiconductor manufacturer and supplier to the U.S. government, and the world leader in RF semiconductor technology, GF has been leading the charge to accelerate U.S. semiconductor manufacturing and boost our capacity to meet the growing global demand for chips," said GF CEO Tom Caulfield. "The kind of partnership we are announcing today with GWC is only possible thanks to Congressional leadership and the renewed national interest in growing U.S. semiconductor manufacturing capacity."

The silicon wafers produced by GWC are key input materials for semiconductors and an integral part of GF's supply chain. The wafers are used in GF's multi-billion dollar manufacturing facilities, or fabs, where they are used to manufacture the computer chips that are pervasive and vital to the global economy. Today's announcement expands GF's domestic silicon wafer supply from the United States.

In particular, the 300mm wafers made at GWC's MEMC site in Missouri will be used at GF's most advanced manufacturing facility, Fab 8 in Malta, New York, and the 200mm wafers made at the Missouri site will be used at GF's Fab 9 in Essex Junction, Vermont. According to company officials, these wafers will be used to create feature-rich semiconductor solutions to meet the sharply growing demand for GF's advanced RF technologies across a range of applications including 5G smartphones, wireless connectivity, automotive radar, and aerospace.

"We are proud to deepen our strategic partnership with GF, and to expand our important role in the U.S. semiconductor supply chain," said Doris Hsu, Chairman and CEO of GWC. "We thank the State of Missouri for its support. We also thank our incredible O'Fallon team, whose dedication and hard work have enabled our success and growth. We look forward to ramping up our 300mm pilot line this year and accelerating our build-out with GF."

GF is investing $1.4 billion in 2021 alone to expand its manufacturing capacity, to meet the needs of customers and address the growing global demand for computer chips. As part of this growth, GF will require an increased supply of wafers like those made by GWC. In February 2020, GWC and GF announced intentions to collaborate closely to significantly expand GWC's existing 300mm SOI wafer manufacturing capacity. Today's announcement signals a significant step forward in that collaboration, company officials said.

The agreement is strengthened by $9.4 million in investments and support from the State of Missouri, as well as support from the City of O'Fallon, Ameren Missouri, Spire, and Greater St. Louis, Inc.

"We're proud to see a Missouri business step up to address the critical semiconductor need we are seeing in countless industries all across our state and nation," said Missouri Governor Mike Parson. "MEMC's expansion will strengthen the global semiconductor supply chain, promote American manufacturing, and support good-paying jobs right here in Missouri."

GF employs more than 7,000 people across the U.S. Over the past 12 years, the company has invested $15 billion in U.S. semiconductor development, and it is doubling its planned investment in 2021 to expand global capacity and support growing demand from the U.S. government and industry customers for secure processing and connectivity applications.