September 6, 2024 /SemiMedia/ — GlobalWafers, the world’s third-largest silicon wafer supplier, is expanding its manufacturing footprint across six of the nine countries where it operates, including two sites in the United States, as well as facilities in Italy and Denmark. The move comes in response to anticipated tariff increases on chip materials, highlighting concerns that tit-for-tat trade measures could disrupt semiconductor supply chains in the coming years.

“I believe there will be specific tariffs not just in the U.S., but also in other regions,” GlobalWafers Chair and CEO Doris Hsu told reporters in an interview. “Shifting to local production can help us avoid potential tariffs,” she added.

The geopolitical climate has increasingly influenced how companies operate, with semiconductor technology being viewed through a security lens, particularly since the COVID-19 pandemic. Rising geopolitical tensions have further exacerbated these risks.

Hsu noted that geopolitical factors are now reshaping business strategies. A turning point for GlobalWafers was the failed $5 billion acquisition of German rival Siltronic AG in 2022, which was blocked by regulators. Prior to the attempted acquisition, over 80% of the company's growth came from mergers and acquisitions.

“We changed our policy because cross-border M&A has become increasingly difficult,” Hsu said. “That's why we began expanding in six countries starting in 2022.”

This year, GlobalWafers secured €103 million ($114 million) in funding from the European Commission and the Italian government to build a 12-inch wafer plant in Novara, Italy. The company also received $400 million from the U.S. CHIPS Act to expand its facilities in Texas and Missouri, a move expected to create 2,500 jobs in construction and manufacturing.