Hemlock Semiconductor (HSC), the largest producer of ultra-pure polysilicon in the United States, has secured a federal investment of up to $325 million for the construction of a new manufacturing plant on its campus in Hemlock, Michigan. This investment comes from the CHIPS and Science Act, legislation aimed at strengthening semiconductor production in the country, creating well-paying jobs, and reducing dependence on critical foreign technologies.
The new facility will allow HSC to expand the production of ultra-pure polysilicon, an essential component in the manufacture of semiconductor chips. These chips are used in a wide variety of products ranging from vehicles, mobile phones, medical devices, to agricultural equipment and defense technologies. This project will not only create 180 permanent jobs in advanced manufacturing but also generate thousands of construction jobs, revitalizing the regional economy of Saginaw.
“This is a transformative moment for manufacturing in Michigan,” highlighted Governor Gretchen Whitmer. “Thanks to the Biden-Harris administration and their commitment to the CHIPS and Science Act, we are securing our position as leaders in semiconductor production, a crucial component in nearly every electronic device in the world. This investment will not only bring well-paying jobs but also strengthen our supply chains and national security.”
An investment to boost domestic production
Hemlock Semiconductor is one of the five companies in the world that produces the quality of polysilicon needed for semiconductor chips. The importance of this investment lies in the need to ensure a reliable source of this material in the United States, reducing dependence on foreign suppliers. In the words of AB Ghosh, president and CEO of HSC, “this investment represents a unique opportunity to advance in advanced manufacturing technology and strengthen our leadership capacity in the semiconductor market, ensuring sustainable and high-quality production.”
The expansion of HSC’s production also responds to the growing demands of the global semiconductor market, driven by technological evolution and the increasing need for chips in areas such as artificial intelligence, electric vehicles, and solar energy. The CHIPS Act has been instrumental in promoting these types of strategic investments, with the goal of repatriating the manufacturing of critical components to American soil.
Strengthening the economy and national security
Michigan Senators Gary Peters and Debbie Stabenow played a crucial role in crafting the CHIPS Act and ensuring that HSC qualified for this grant. “In Michigan, we know how to do things right and with precision,” commented Senator Peters. “This investment will not only keep Michigan at the forefront of advanced manufacturing but also create thousands of well-paying jobs. HSC is a key piece for both our economy and national security.”
The investment also reinforces efforts to address the challenges that arose during the pandemic, when disruptions in global supply chains highlighted the vulnerability of relying on foreign manufacturing. “We have firsthand learned what happens when we rely on chips made on the other side of the world,” commented Senator Stabenow. “Thanks to this significant federal investment, we will be able to address the breaks in our supply chains, reduce costs, and bring jobs back to the United States.”
Regional impact and future
The $325 million investment in Hemlock Semiconductor will not only have a positive impact on semiconductor production but also benefit the local community in Hemlock and surrounding areas. State Representative Graham Filler noted that “national production is a game-changer” for the region, while State Senator Kevin Daley praised the project for its ability to strengthen the economy and development in Michigan.
With this investment, HSC is positioned to continue being a fundamental pillar in the semiconductor industry, contributing to job creation and strengthening the competitiveness of the United States in the global market.