Michigan-based Hemlock Semiconductor was awarded up to $325 million in direct funding yesterday from the U.S. Department of Commerce’s CHIPS Incentives Program. Hemlock is the only U.S.-owned manufacturer of hyper-pure polysilicon and is one of five companies in the world producing polysilicon to the purity level required by the semiconductor market.
According to the Biden-Harris Administration, the investment will support the construction of a new manufacturing facility in Hemlock, Michigan and is expected to create some 180 manufacturing jobs as well as more than 1,000 construction jobs over time. Production is scheduled to begin in 2028 and the project is expected to cost some $825 million.
The award follows a previously signed preliminary memorandum of terms, announced on October 21, 2024, and the completion of the Commerce Department’s due diligence. The funds will be distributed as Hemlock completes project milestones.
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“CHIPS for America’s investment in [Hemlock] will help advance supply chain security by ensuring the U.S. has a reliable, domestic supply of polysilicon – the bedrock of semiconductors,” said U.S. Secretary of Commerce Gina Raimondo. “Establishing a domestic source of these materials is important for development of leading-edge chip applications, which helps bolster our economic and national security.”
Polysilicon is a foundational material for microprocessors, artificial intelligence chips, memory, and power devices, and is the physical substance that gives chips their semiconductor properties.
The award includes up to $5 million dedicated to workforce initiatives. For example, Hemlock is developing local talent by partnering with Delta College and Saginaw Career Complex to support and create programs that connect the local community to training and employment opportunities, including a skilled trades youth apprenticeship public high school co-op program. The company will also invest a minimum of $1.3 million annually for four years into a variety of initiatives, such as wraparound services, local internship programs, and local K-12 STEM programming.
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