Area Development: Brent, thank you for joining us. Can you begin by giving an overview of GlobalWafers and your role in the semiconductor supply chain?
Brent Omdahl: Certainly. GlobalWafers is one of only five companies globally producing semiconductor wafers. We currently hold about an 18 percent market share, making us the third-largest player. Our annual sales are between $2.2 and $2.5 billion. Semiconductors begin with wafers, and the properties we engineer into them—flatness, resistivity, defect tolerance—are critical to the performance of our customers’ chips. To put it into perspective, we sell wafers for about $100 each, but our customers turn them into products worth $10,000 to $12,000. This demonstrates the high value-add downstream in the semiconductor supply chain.
Let’s talk about your new $3.5 billion facility in Sherman, Texas. Why did GlobalWafers choose Sherman over other locations?
Omdahl: It was a highly competitive process. Ohio made a compelling case, offering significant incentives and leveraging Intel’s recent foundry investments in the state. However, Sherman had several key advantages. First, there’s a legacy of semiconductor talent in the area, dating back to the MEMC days. MEMC pioneered wafer manufacturing, and many experienced engineers are still in the region. Second, Sherman’s economic development organization provided strong tax abatements and other incentives. Lastly, Texas’ decentralized economic development structure and low energy costs sealed the deal. For instance, our power costs in Sherman are the lowest across our global operations, giving us a critical competitive edge.
Workforce development is often a significant factor in site selection. How is GlobalWafers approaching this?
Omdahl: Workforce development is a major focus for us. In Sherman, we’re leveraging partnerships with local institutions like Grayson College, which runs an Advanced Manufacturing Program developed in collaboration with Texas Instruments. This program trains semiconductor technicians with the exact skills we need. We’ve also joined workforce consortia such as the North Texas Semiconductor Workforce Consortium and the Texoma Tech Hub. These initiatives allow us to expand our recruitment efforts across the Dallas-Fort Worth area and even into nearby states like Oklahoma. Additionally, while automation will reduce operator roles, it increases the demand for skilled technicians, so we’re concentrating our efforts on two-year degree programs that train manufacturing, repair, and maintenance technicians.
What challenges have you faced in bringing this project to life?
Omdahl: One of the biggest challenges has been the cost of construction, which is 40 to 50 percent higher in the U.S. than in East Asia. Additionally, this facility marks a strategic shift for us. Historically, we’ve grown through acquisitions, but this greenfield investment was driven by customer demand for local supply. Another key challenge was ensuring we remain competitive on costs. Texas’ infrastructure, particularly its low energy costs, was a major factor in overcoming this. We’ve even built a substation on-site to secure reliable and affordable power.
Sustainability has become increasingly important in manufacturing. How is this reflected in your Sherman facility?
Omdahl: Sustainability is one of our top priorities. Our facility is already connected to the Texas grid, which is 34 percent renewable, but we’ve committed to transitioning to 100 percent renewable energy by 2030. We’re exploring options such as investing in solar farms to achieve this. In Denmark, we built a solar park to power one of our facilities, and we’re considering similar initiatives here in Texas. These efforts align with our broader corporate goals and reflect the environmental values of our leadership.
How do you view U.S. industrial policy, particularly the CHIPS Act, in shaping the semiconductor industry?
Omdahl: U.S. industrial policy, including the CHIPS Act, has been instrumental. Programs like these help level the playing field, especially for companies like ours that face high capital expenditures and thinner margins. Whether through tax incentives or direct grants, these subsidies are critical for driving manufacturing back to the U.S. Additionally, our customers have been pushing for more regionalized supply chains, and policies like the CHIPS Act support this trend. Our investment in Sherman is a direct response to these market and policy shifts.
Thank you, Brent, for sharing these insights. Is there anything else you’d like to add?
Omdahl: Just that I appreciate the opportunity to speak with you. If you’re ever in Sherman, feel free to visit our facility and see what we’re working on.
