Manufacturers have responded to the global semiconductor chip shortage with plans to boost domestic production. The U.S. semiconductor sector saw $40.5 billion in gross capital expenditures in 2021 as companies worked to meet demand, according to the Semiconductor Industry Association. Taiwan-based GlobalWafers announced plans in June for a $5-billion wafer production plant in Sherman, Texas. Sherman is also where Texas Instruments recently broke ground on a $6.5-billion plant, known as a “fab,” which the company says could be the first of four at the site. Other large projects in the works include a $17-billion Samsung plant planned for Taylor, Texas, and Intel’s $20-billion, two-fab “mega-site” in New Albany, Ohio. However, some of these high-price projects could face delays as lawmakers have not yet reached a deal on $52 billion over five years promised by the CHIPS Act to boost U.S. semiconductor manufacturing. Both houses of Congress have passed the act, but lawmakers have not yet reached a deal for the money to be available. In a statement, an Intel spokesperson said the delay in CHIPS Act funding may delay the groundbreaking for its Ohio project. Commerce Secretary Gina Raimondo said during a June 27 CNBC interview that the delay could put GlobalWafers’ Texas plant plan in jeopardy, and she called on lawmakers to reach a deal before their August recess.

Texas Instruments broke ground on a $6.5-billion Texas fabrication plant.
Photo courtesy of Texas Instruments

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