$325 million granted to Michigan for polysilicon plant expansion

(The Center Square) – Saginaw-based Hemlock Semiconductor Corp. will receive $325 million from the federal government to fund the construction of a new polysilicon manufacturing facility.

The taxpayer money was made available through the CHIPS Act, which has already allocated more than $36 billion nationally to semiconductor-related manufacturing projects. Polysilicon is a critical material in semiconductors and chips, and HSC is the only U.S.-headquartered producer of hyper-pure polysilicon.

“HSC is one of many Michigan-based companies that is helping us lead the future of advanced manufacturing,” Michigan Gov. Gretchen Whitmer said Monday. “Thanks to the Biden-Harris administration’s bipartisan CHIPS and Science Act and the U.S. Department of Commerce, we are ensuring HSC’s global leadership in the powerful domestic supply chain to manufacture semiconductor chips needed for everything from computers and phones to AI applications.”

Construction is set to begin in 2026 and the facility is expected to begin production in 2028, adding an estimated 180 jobs to the area.

“HSC is proud to be a manufacturing powerhouse for two vital industries of the future—semiconductor and solar. Bolstered by the CHIPS Act, we are planning for a once-in-a-generation investment in advanced technologies to continue serving as a top polysilicon supplier to the leading-edge semiconductor market,” HSC CEO AB Ghosh said. “As the United States works to reshore critical supply chains, we hope to make additional investments.”

HSC has had to cut hundreds of jobs over the past decade due to oversupply in the polysilicon industry and international trade disputes.

The U.S. currently has a 12% global share in semiconductor manufacturing capacity and makes none of the world’s most advanced semiconductor chips. The Biden administration has set a goal for America to make 20% of the world’s supply of leading-edge semiconductor chips by 2030.