January 8, 2025
Nick Rajkovich / news@whmi.com
Gov. Gretchen Whitmer announced Tuesday that the Biden administration has completed $325 million in direct funding to Michigan-based manufacturing company Hemlock Semiconductor, creating 180 permanent advanced manufacturing jobs and 1,000 new jobs. announced that it has completed construction of a new facility that will support more high-paying construction jobs.
This direct funding builds on the bipartisan CHIPS and Science Act, which focuses on bringing critical supply chains and high-wage, cutting-edge jobs back to America.
“Another big win for the state of Michigan. Today’s innovative investment in Hemlock Semiconductor will create more than 1,180 good-paying manufacturing and construction jobs and make Michigan a leader in the semiconductor industry. It will help us continue to lead into the future,” said Governor Whitmer. “Hemlock is a world leader and the only American-owned company in the production of ultra-high purity polysilicon, a critical material in everything from phones to appliances to cars. We’re proud to do it right here in Michigan. Now, we’re bringing our supply chain back home and saving costs.” We’re funding our manufacturers, creating cutting-edge opportunities for our employees and continuing to lead into the future right here in Michigan. ”
“HSC is proud to be a manufacturing powerhouse in two important industries of the future: semiconductors and solar power. Strengthened by the CHIPS Act, we are poised to continue our role as the premier polysilicon company. We are planning a once-in-a-generation investment in advanced technology to become a supplier to the cutting-edge semiconductor market,” said AB Ghosh, HSC Chairman and CEO. “Our customers want high quality, sustainably produced polysilicon. Our commitment to rebuilding critical supply chains demonstrates HSC’s unique ability to meet these demands and our understanding of our critical role in strengthening America’s national interests. I would like to do this.”
“American independence means repatriating critical supply chains from places like China,” said Sen. Elissa Slotkin. “And semiconductor chips are absolutely critical to Michigan’s economic security and America’s national security. This CHIPS Act award will give thousands of workers in mid-Michigan access to the middle class and We will be able to protect our industry and strengthen our domestic supply chain.”
Hemlock Semiconductor is one of the largest manufacturers of ultra-high purity polysilicon, an essential material for electronics and solar panels, and the only company headquartered in the United States. In a growing global economy, HSC has established Michigan as a leader at the forefront of innovation and technology, and HSC polysilicon is used in nearly every electronic device around the world. This production facility will increase HSC’s manufacturing capabilities to support the semiconductor supply chain here in Michigan.
In Michigan alone, Tuesday’s announcement means the state is receiving about $1.5 billion in investments in semiconductor and electronics manufacturing. These policies also spurred a historic recovery in manufacturing, with 642,000 manufacturing jobs added across the United States since 2021.
This funding represents the largest CHIPS investment ever in Michigan, and the Whitmer-Gilchrist administration is committed to continuing to bring supply chains home to combat the negative effects of offshoring chip manufacturing.
Although America invented the semiconductor, it now accounts for only 12% of the world’s chip supply. In 2021, Americans witnessed the effects of offshoring, with parking lots full of nearly completed Michigan-made cars and trucks waiting for semiconductor chips from Asia. This national chip shortage has also increased the cost of electronics and appliances, resulting in delays for households and small businesses across the state.
In addition to up to $325 million from the CHIPS Act, Michigan completed the deal with $40 million from the Make It in Michigan Competitiveness Fund to Hemlock Semiconductor and an additional partnership from the Michigan Economic Development Corporation. We support the project.
The State of Michigan has a long-standing partnership to support HSC’s growth, including an investment in Thomas Township in September 2022. HSC also works with the Michigan Department of Environment, Great Lakes, and Energy and Governor Gretchen Whitmer’s Climate Solutions Council to support a brighter, lower-carbon future for Michigan.
