SAGINAW, Mich. — Hemlock Semiconductor has officially secured a $325 million grant from the federal government, marking a significant investment in the region’s economy. The funding, contingent on meeting criteria under President Biden’s CHIPS and Science Act, will enable the company to build a new facility and create 180 permanent jobs in Mid-Michigan.
Chris Douglas, an economics professor at the University of Michigan Flint, emphasized the importance of the federal support, saying, “It’s unlikely that we would see this kind of investment without these federal subsidies. So for Saginaw County, the support from the federal government is crucial.”
The expansion is expected to generate 1,000 construction jobs during the building phase. Douglas noted, “These workers will move to Saginaw County, they’ll buy goods and services in Saginaw County, so that will spur further job creation.”
Hemlock Semiconductor is one of only five companies worldwide that produce hyper-pure polysilicon, a critical component in semiconductor manufacturing. The recent global supply chain disruptions highlighted the importance of these small chips, particularly for the auto industry.
Douglas added, “One step, but we’re talking about 300 to $30 million in a $90 billion market. So it would take a lot more investment to move all of the global semiconductor manufacturing back to the US.”
Rep. Kristen McDonald-Rivet, D-Mich., 8th District, highlighted the broader impact of the investment, stating, “It’s not just right here at Hemlock, it’s all of the suppliers that are feeding into it and its expansion of housing and what it would mean for regional transportation and what it will mean for all of those things all come from these types of investments.”
This grant represents the largest investment in semiconductor manufacturing that Michigan has seen, made possible through the CHIPS and Science Act under the Biden administration.