SHERMAN, Texas (KXAN) — A new semiconductor facility expected to create 1,500 jobs is headed to far North Texas.
According to a release from the governor’s office, GlobiTech, a subsidiary of Taiwan-based GlobalWafers, is expanding in Sherman, Texas by adding the new manufacturing facility. The company was also awarded a $15 million Texas Enterprise Fund grant.
GlobiTech was first founded in 1999 in the town about 70 miles north of Dallas and began operating in 2001, according to its website. The company “provides silicon epitaxy products and services to the worldwide semiconductor industry,” which has been impacted by the pandemic.
Because of demand and supply chain issues, there’s been a global shortage of chips, which are used in everyday technologies like cars and cell phones. Semiconductor facilities help create these chips.
Gov. Greg Abbott said in a statement he hopes the new facilities will boost “Texas’ global position in the semiconductor industry amid a worldwide chip shortage.”
According to a 2022 industry outlook from Deloitte, more countries, including the United States, are looking to localize chip manufacturing to help with the shortage.
“Advanced 300 millimeter silicon wafers are currently manufactured in Asia, forcing the U.S. semiconductor industry to rely on imported silicon wafers,” said GlobiTech President Mark England in a press release. “This exciting and bold investment in my hometown of Sherman will represent the first new silicon wafer facility in the U.S. in over two decades and close a critical semiconductor supply chain gap.”
The Austin area already has a couple of semiconductor facilities, including the existing Samsung campus off Parmer Lane in northeast Austin. The tech giant has plans for a new $17 billion chipmaking plant in Taylor.
Overall, Deloitte predicts the chip shortage will be “less pronounced because of increased capacity” this year, and the semiconductor industry as a whole will grow 10% to $600 billion.