A $325 million federal grant will enable Hemlock Semiconductor to expand operations—and create hundreds of “really good-paying jobs,” according to state officials.
MICHIGAN—Hundreds of millions of dollars in federal grant funding announced this week is set to help the state of Michigan secure its spot in the global semiconductor manufacturing supply chain, as well as create hundreds of temporary and full-time jobs in Saginaw County.
The Biden-Harris administration on Monday announced that Hemlock Semiconductor, the country’s largest producer of semiconductor-grade polysilicon, will receive $325 million to help expand its existing manufacturing operations, which are headquartered in Thomas Township.
It’s the first project in Michigan to receive funding from the CHIPS and Science Act. And in addition to creating 1,000 temporary construction jobs and 180 new, full-time manufacturing jobs, the new facility is set to help ensure that the state of Michigan plays a “starring role” in the global race to manufacture more advanced semiconductor chip technology in the United States.
“It’s a big day for Michigan, a big day for American manufacturing, and creating good, high-paying manufacturing jobs in Michigan,” US Secretary of Commerce Gina Raimondo said on Monday. “This is an absolutely critical supplier in the supply chain and what we’ve been out to do with the CHIPS Act is not just build a few new factories, but fundamentally revitalize the semiconductor ecosystem in our country with American workers. And that’s what this is about.”
The new, non-binding, preliminary agreement with Hemlock includes a greenlight for the company to receive up to $325 million in federal grant funding through the CHIPS and Science Act, namely to support the construction of a new manufacturing facility in Hemlock—which will be dedicated to the production and purification of hyper-pure semiconductor-grade polysilicon.
And if all goes as planned, construction crews will break ground on the project next year and ramp up full-scale polysilicon production by the end of 2028 or early 2029, officials said.
“It’s just another example of how strengthening our domestic material manufacturers will bolster America’s entire semiconductor industry,” Raimondo added. “We now have all five of the country’s leading-edge chip manufacturers expanding in the United States of America. … We are together, working together to unlock a new chapter in American industrial investments.”
Hemlock Semiconductor is the only US-based manufacturer of hyper-pure polysilicon—which is the foundational material needed for microprocessors and artificial intelligence chips, as well memory and power devices, that essentially gives all chips their semiconducting properties.
The Michigan-based manufacturer is also one of just five companies in the world that’s producing polysilicon to the purity level needed to serve the leading-edge semiconductor market, as well as for Michigan’s automotive manufacturing industry as a whole.
“This is a big win for Team Michigan,” Gov. Gretchen Whitmer said. “Nearly every electronic device in the world contains Hemlock Semiconductor’s hyper-pure polysilicon. It’s amazing.”
Since President Joe Biden signed the CHIPS Act into law in 2022, the federal legislation has generated more than $36 billion in proposed funding to help support dozens of new semiconductor and other electronics manufacturing projects across at least 20 states.
And although the federal bill garnered immediate praise as a big boon for Michigan’s automotive manufacturing industry, this week marks the first time it has paid direct dividends in the state.
“Today’s announcement will help ensure Michigan remains at the forefront of advanced manufacturing for years into the future,” National Economic Advisor Lael Brainard said during a call with reporters on Monday. “From cell phones and computers, to AI and cutting-edge military systems, to Michigan’s world-class auto industry, each one needs thousands of semiconductors made with the hyper-pure polysilicon that Hemlock will manufacture in Michigan.”
The proposed funding also included $5 million to support the development of Hemlock’s production and construction workforce—including through a new partnership with Delta College and Saginaw Career Complex that’s set to create local training and employment opportunities.
Salary estimates for the new jobs at the facility weren’t immediately available, but US Rep. Dan Kildee said he expects them to be “really good paying jobs you can raise a family on.” Hemlock Semiconductor is also participating in a new child care cost-sharing program where employees, employers, and the state of Michigan each pay one-third of the cost of eligible child care costs.
“What we’re investing in is American manufacturing, securing our supply chain, making America’s economic situation far more competitive on the global stage,” Kildee said. “This is not just a win for Michigan. It’s also strengthening US supply chains across the board—ensuring that we manufacture things here in Michigan, not get them from places overseas like China.”
In a call with reporters this week, senior White House officials also emphasized that the agreement with Hemlock was only “preliminary” and that the federal funding would be awarded over the next several years—which means that Republican lawmakers and ex-President Donald Trump’s administration could, in theory, still derail the project before construction is finished.
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