GlobalWafers Inc (環球晶圓), the world’s No. 3 silicon wafer supplier, yesterday said it would adhere to US regulations and subsidy conditions as it looks to build a semiconductor manufacturing facility in Texas, pending passage of a US bill to fund new chip facilities in the country.
“Government regulation certainly is one of many factors we have to consider when making a new investment in a country,” GlobalWafers chairwoman Doris Hsu (徐秀蘭) told an online investors’ conference arranged by the Taipei Exchange.
“If we enjoy a country’s subsidies, we will follow regulations,” she added.
Photo: Ann Wang, Reuters
For security reasons, Washington is looking to restrict chipmakers that benefit from the US creating helpful incentives to produce semiconductors for America act from investing in China over a 10-year period, with some exceptions.
Hsu declined to comment specifically on what restrictions the firm might face from the act, as details are subject to deliberations over the weekend before being voted on by the US House of Representatives.
US senators on Tuesday held a procedural vote in favor of advancing the semiconductor legislation, setting the stage for the final consideration of the bill.
To serve foundry customers in the US, GlobalWafers last month announced to allocate US$5 billion to build a new 12-inch fab in Texas. The scheduled November groundbreaking depends on whether the chip funding bill is passed before the House recess in August.
GlobalWafers said about 80 percent of the Texas fab’s capacity has been booked by customers. The company would allocate capacity from fabs in other regions to support customer needs if it encounters delays in construction, it said.
GlobalWafers has been keeping its own inventory at about NT$7 billion per quarter, as inventory levels from its customers were uneven, the company said.
Customers with exposure to smartphone chips are under heavy pressure to digest inventories, while no corrections are seen for customers in the vehicle chip and high-performance computing chip segments, Hsu said.
GlobalWafers said it is maintaining a positive business outlook, as all of its 8-inch and 12-inch fabs are fully utilized.
Most customers have honored long-term supply agreements, only making adjustments when diversifying its products, the company said.
GlobalWafers is in negotiations with customers to sign new supply contracts, although it is taking longer for customers to review contract terms, it said.
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