A Michigan company that makes semiconductor materials could receive up to $325 million in federal funding to build a new facility on its west Saginaw campus.
The funding will come from the CHIPS and Science Act of 2022, which aims to boost domestic production of semiconductors. The funding will support the production and purification of ultra-pure semiconductor-grade polysilicon, a critical component of advanced chips, according to the announcement. The company and the U.S. Department of Commerce have “signed a preliminary, non-binding memorandum of understanding,” according to a news release.
Hemlock Semiconductor Company was founded in 1961. A news release states that the company is “the only U.S.-based manufacturer of ultra-high purity polysilicon and one of only five companies in the world producing polysilicon at the purity required to supply key products. 1 company.” -Edge semiconductor market”
Officials said the investment marks Michigan’s first major CHIPS Act funding and will lead to 1,000 construction jobs and about 180 manufacturing jobs. This new project will be done separately from the 2022 expansion announcement. The company had approximately 1,350 employees at its headquarters, according to a release at the time. The CHIPS Act was promoted as a way for the United States to regain key aspects of semiconductor production. They mainly moved abroad.
U.S. Secretary of Commerce Gina Raimondo highlighted the impact of the CHIPS Act funding.
“We continue to build capacity, which, by the way, barely existed just a few years ago. We are on a mission to achieve our goal of tripling this country’s domestic manufacturing capacity. We’re working on it, and now all five of the world’s most advanced chipmakers are in the U.S.,” Raimondo said on a call with officials and reporters on Monday. They include Gov. Gretchen Whitmer, Sen. Gary Peters (Mich.), and U.S. Rep. Dan Kildee (D-Flint Township).
The chip shortage that followed the pandemic’s initial impact on supply chains showed how dependent U.S. manufacturing is on essential components, particularly in high-tech products and automobiles.
“Here in Michigan, we drive by parking lots and see them filled with cars that are missing a chip or two and can’t deliver. In fact, in 2021, 11 million “With so many cars being delayed or discontinued due to chip shortages, it’s no wonder prices have gone up,” Peters said.
Biden administration officials said construction on the new facility would begin in 2025 and 2026, with production beginning in 2028.
AB Ghosh, chairman and CEO of Hemlock Semiconductor, said in a news release: Strengthened by the CHIPS Act, we plan to make once-in-a-generation investments in advanced technology to continue our role as the top supplier of polysilicon to the cutting-edge semiconductor market. ”
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