$325M federal grant for Hemlock Semiconductor to expand high-tech manufacturing in Michigan - mlive.com

Hemlock Semiconductor, the nation’s leading manufacturer of hyper-pure polysilicon used in the semiconductor and solar industries, is located at 12334 Geddes Road in Thomas Township. (Heather Jordan | MLive.com)

SAGINAW, MI - Michigan leaders, including U.S. Rep. Dan Kildee, D-Flint Twp., and Gov. Gretchen Whitmer, are celebrating a major economic boost for mid-Michigan after the U.S. Department of Commerce announced it will award Hemlock Semiconductor up to $325 million to expand its semiconductor-grade polysilicon manufacturing in Saginaw County.

Thomas Township-based HSC is the only U.S.-headquartered producer of hyper-pure polysilicon — a vital material for semiconductor chips. The company’s planned expansion is expected to boost its production capacity and support the revitalization of American manufacturing in the high-tech sector, according to officials.

In a statement issued Monday, Oct. 21, Kildee highlighted the role of recent federal legislation in bringing high-tech manufacturing jobs to Michigan.

“New laws like the CHIPS and Science Act are helping to bring manufacturing back to mid-Michigan. This is a major economic investment that will help to create hundreds of good-paying new jobs in Saginaw County,” he said.

Kildee emphasized the broader impact of this investment on the state’s economy and global competitiveness.

“Bringing back manufacturing to America will help to secure our supply chains, create good-paying jobs, grow our economy, and ensure we make things in Michigan — not China," Kildee said. “Thanks to Vice President (Kamala) Harris and Democrats, we are ensuring Michigan leads the way in the manufacturing jobs of the future.”

The proposed funding is part of the Biden administration’s larger efforts to boost domestic semiconductor production, reduce reliance on foreign suppliers, and strengthen the country’s technological infrastructure.

“Nearly every electronic device in the world contains Hemlock Semiconductor’s hyper-pure polysilicon, and it’s amazing,” Whitmer said during a media call Monday morning. “Today‘s Hemlock project is the largest CHIPS investment in Michigan so far, but we‘re keeping our foot on the accelerator to win even more.”

U.S. Secretary of Commerce Gina Raimondo said the grant is to support the construction of a new manufacturing facility at HSC’s existing site in Hemlock and create more than 1,000 construction jobs and 180 manufacturing jobs.

“The U.S. needs a reliable source of polysilicon, which is the most critical component and material in semiconductors, and Hemlock has a decades-long presence in Michigan,” Raimondo said during the media call. “It’s actually the only U.S.-based manufacturer of hyper-pure polysilicon and one of only five companies in the world producing polysilicon at the level of purity needed for leading edge semiconductors.”

Polysilicon is a critical material used in the production of microprocessors, AI chips, memory, and power devices. It is the essential substance that provides chips with their semiconductor properties. With the proposed CHIPS Act funding, Hemlock Semiconductor plans to expand its production of hyper-pure, semiconductor-grade polysilicon to support advanced chip applications and the broader semiconductor industry. This proposed funding would be the first significant investment in HSC’s semiconductor manufacturing capacity in more than two decades.

In addition, the state of Michigan is supporting the proposed project with $40 million from the Make It in Michigan Competitiveness Fund to Hemlock Semiconductor and additional partnership from the Michigan Economic Development Corp., according to a news release from the state.

Crews are expected to break ground on the site in 2025, with construction beginning in 2026 and production starting in 2028.

“HSC is proud to be a manufacturing powerhouse for two vital industries of the future—semiconductor and solar. Bolstered by the CHIPS Act, we are planning for a once-in-a-generation investment in advanced technologies to continue serving as a top polysilicon supplier to the leading-edge semiconductor market,” HSC Chairman and CEO AB Ghosh said in a statement.

“Our customers want high quality and sustainably made polysilicon. This proposed investment demonstrates that the Biden-Harris Administration, Governor Whitmer and our Michigan congressional champions understand HSC’s unique ability to meet those demands and our crucial role in strengthening American interests. As the United States works to reshore critical supply chains, we hope to make additional investments.”

This marks the first announcement in Michigan regarding an investment under the CHIPS and Science Act, officials said.

In neighboring Genesee County, a proposed 1,000-acre “mega site” has been in the works in Mundy Township, just four miles south of Flint.

The site is well positioned to be home to an advanced manufacturer that will create thousands of new jobs, pump millions of dollars into the local economy and help bring the supply chain back to the United States, according to Flint & Genesee Economic Alliance officials.

However, when asked during Monday’s call, senior administration officials declined to comment on whether the CHIPS Act funding would also be implemented before the Nov. 5 election in Mundy Township.

CHIPS for America has allocated over $36 billion in proposed funding across 20 states and proposed to invest billions more in research and innovation, which is expected to create over 125,000 jobs.

HSC was founded in 1961 and employs approximately 1,350 people at its headquarters in Thomas Township. It is owned by world-leading applied science and technology companies Corning Inc. and Shin-Etsu Handotai.

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