SAGINAW COUNTY, MI – Hemlock Semiconductor is another step closer to enhancing its manufacturing capabilities in Saginaw County thanks to $325 million in newly secured CHIPS Act funding.

The U.S. Department of Commerce has awarded Thomas Township-based Hemlock Semiconductor (HSC) up to $325 million in direct funding under the CHIPS Incentives Program’s Funding Opportunity for Commercial Fabrication facilities, according to a news release issued Tuesday, Jan. 7. A preliminary agreement was announced last fall.

This award will support the construction of a new manufacturing facility in Saginaw County, creating approximately 180 manufacturing jobs and more than 1,000 construction jobs, the U.S. Department of Commerce news release states.

“We are pleased to announce the signing of a direct funding agreement with the Department of Commerce under the CHIPS Act. This agreement is a key milestone in enhancing our manufacturing capabilities as we continue to serve the leading-edge semiconductor market with high quality and sustainably made polysilicon,” HSC Chairman and CEO AB Ghosh said in a statement.

“The new facility will play a crucial role in strengthening the semiconductor supply chain in the United States. The support from the Department of Commerce and our dedicated partners at all levels of government has been instrumental in making this possible. We look forward to contributing to the revitalization of the domestic supply chain, creating good-paying jobs and driving technological leadership in the semiconductor industry.”

HSC is to receive the funds upon completion of project milestones, the release states.

“CHIPS for America’s investment in HSC will help advance supply chain security by ensuring the U.S. has a reliable, domestic supply of polysilicon – the bedrock of semiconductors,” U.S. Secretary of Commerce Gina Raimondo said in a statement.

“Establishing a domestic source of these materials is important for development of leading-edge chip applications, which helps bolster our economic and national security. Through targeted investments like this, the Biden-Harris Administration is driving technological innovation in industries of the future and creating jobs across the country.”

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

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