U.S. confirms Taiwan's Global Wafer Semiconductor grant

The U.S. Department of Commerce said it has finally decided to pay up to $406 million in subsidies under the Semiconductor Act and 660 billion won in Korean money to Taiwan's silicon wafer manufacturer Global Wafer.

The two sides signed a preliminary transaction memorandum in July and have been negotiating to finalize the final grant.

The grant will be supported by Global Wafer's $4 billion investment in Texas and Missouri to build wafer manufacturing plants.

According to the Semiconductor Act enacted in 2022, the Ministry of Commerce explained that it has allocated $36 billion in subsidies and 51.7 trillion won in Korean money based on the preliminary transaction memorandum, and has finalized $25 billion now.

President-elect Donald Trump has expressed his negative stance on subsidies for semiconductors laws, prompting the Joe Biden administration to rush negotiations to determine the size of the subsidies.

Earlier, the Biden administration confirmed $7.865 billion in subsidies to Intel on the 26th of last month and $6.165 billion to Micron on the 10th of this month, respectively.

Samsung Electronics and SK Hynix are also negotiating with preliminary transaction memorandums that receive subsidies of $6.4 billion and $450 million, respectively.