GlobalWafers, Micron reach consensus on long-term partnership deal

Taipei, July 11 (CNA) Taiwan-based GlobalWafers Co., the world's third largest silicon wafer supplier, said it has reached a "mutual intent" to collaborate with American memory chip maker Micron Technology Inc. on a Long-Term Agreement (LTA).

The partnership, aimed at strengthening the resilience of the United States semiconductor supply chain, will see Micron provide US$500 million in strategic financing to support the development and supply capabilities of GlobalWafers' U.S. operations, the wafer vendor said Thursday.

The two companies will also establish a long-term cooperation framework through a 10-year LTA with GlobalWafers to supply advanced raw silicon wafers based on Micron's long-term demand, the Taiwanese manufacturer said in a statement.

GlobalWafers said the partnership is expected to meet growing demand for advanced memory chips driven by AI, high performance computing and data center applications and cloud services, and ensure the supply of critical materials required for next-generation memory chip technology development.

The collaboration is also expected to further enhance GlobalWafers' manufacturing capabilities in the United States and support long-term demand for critical materials across the U.S. semiconductor supply chain.

According to GlobalWafers, the company is currently the only silicon wafer supplier participating in the CHIPS for America Program to roll out high-end 12-inch wafers on U.S. soil.

"This collaboration (with Micron) reflects GlobalWafers' continued commitment to supporting customers' long-term development through disciplined investment, technical strength, and high-quality products," said GlobalWafers Chairperson and CEO Doris Hsu (徐秀蘭) in the statement.

Micron said the partnership is essential to securing a reliable supply of critical raw materials needed for its long-term growth and technology development.

"Our strategic partnership with GlobalWafers reflects a shared commitment to strengthening the U.S. semiconductor ecosystem (and) enhancing supply assurance for a critical manufacturing material," Micron Senior Vice President and Chief Procurement Officer Ben Tessone said in the same statement.

Global Wafers, which has used mergers and acquisitions to aggressively expand its network, currently operates 18 sites in nine countries -- Taiwan, China, the United States, Japan, Denmark, South Korea, Italy, Malaysia and Singapore.