SHERMAN, Texas (KTEN) — The Sherman Economic Development Corporation is pledging to contribute $2 million toward GlobiTech's $100.5 million expansion plan in Sherman.

The project will let GlobiTech start manufacturing silicon carbide wafers, which are then sent to companies like Texas Instruments and Intel.

The money serves as an incentive package, ensuring that GlobiTech's business and dollars stay in Sherman.

"That's important for us; number one, because it's an investment in the local plant and keeps GlobiTech here in Sherman competitive globally against the other companies that are trying to get into the silicon carbide market," said SEDCO President Kent Sharp.

He added that demand for silicon carbide products is rapidly increasing.

"Silicon carbide substrate is what's fueling the electric vehicle market," Sharp said. "It's what's fueling the large-scale battery storage, like grid storage batteries that go in electric vehicles."

SEDCO's contribution to the GlobiTech expansion is funded by a small percentage of Sherman's sales tax.