TAIPEI (Taiwan News) — The U.S. Department of Commerce announced Wednesday (July 17) it has signed a non-binding preliminary memorandum of terms (PMT) with GlobalWafers to provide up to US$400 million (NT$13 billion) to produce 300mm silicon wafers in the U.S.

According to a U.S. Department of Commerce press release, the funds will come from CHIPS and Science Act. The investment could create 1,700 construction jobs and 880 manufacturing jobs, the department said.

Under the planned subsidy, GlobalWafers intends to construct and expand factories in Sherman, Texas, to produce wafers and memory chips, per Liberty Times. They will also build facilities in St. Peters, Missouri, to produce wafers for defense and aerospace chips.

U.S. Secretary of Commerce Gina Raimondo said, “GlobalWafers will play a crucial role in bolstering America’s semiconductor supply chain by providing a domestic source of silicon wafers that are the backbone of advanced chips.”

“As a result of this proposed investment, the Biden-Harris Administration is helping to secure our supply chains, which will create over 2,000 jobs across Texas and Missouri and ultimately lowering costs and improving economic and national security for Americans,” she added.

U.S. Congress approved the Chips and Science Act in 2022 to boost domestic semiconductor output with US$52.7 billion in research and manufacturing subsidies, per Reuters.