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US could lose silicon wafer factory if CHIPS Act is not funded

US Commerce Secretary Gina Raimondo told CNBC’s Jim Cramer on Monday that she believes GlobalWafers will follow through with a plan to build a silicon wafer factory in Texas – but only if Congress passes funding for The CHIPS Act for America at the start of the August recess.

“This investment they are making depends on Congress passing the CHIPS Act [funding]. The CEO told me that it was her, and they reiterated that today,” Raimondo said in an above interview.Crazy money. “

“It has to be done before they go into the August recess. I don’t know how to put it more clearly. This deal…will disappear, I think, if Congress doesn’t act.” , she added.

GlobalWafers, a Taiwan-based semiconductor silicon wafer maker, said Monday that it plans to build a facility to manufacture the component in Sherman, Texas. The facility can create up to 1,500 jobs and produce 1.2 million wafers per month, according to US Department of Commerce.

The CHIPS (Creating Useful Incentives for Semiconductor Manufacturing) Act for the United States encourages investment in the U.S. semiconductor industry. Although it was passed in January 2021, a funding package has yet to be passed by Congress.

Difficulties in the supply chain have made it difficult for many different industries, especially the automotive industry, to ensure the safety of semiconductors, while demand is high.

“Semiconductor demand will double in the next 10 or 11 years. It takes several years to operate a new facility, which means these companies have to make their decisions now. announced today because they needed Raimondo to speak.

The Commerce Secretary, who has previously lobbied Congress for a stronger US semiconductor industry to be less dependent on foreign suppliers, reiterated that timing matters most.

“I think it’s time for people to be much more realistic. … People have to realize that you’re not going to get everything you want. We have to make this into essential, transcendent categories. this and move quickly,” she said.

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