The Department of Commerce (DoC) has finalized an agreement with Hemlock Semiconductor (HSC) for up to $325 million in direct funding under the CHIPS and Science Act to aid in the construction of a new semiconductor-grade polysilicon manufacturing facility.
President Biden signed the CHIPS and Science Act into law in August 2022, making up to $52 billion of funding available to incentivize semiconductor manufacturers to establish new manufacturing operations in the United States.
Currently, HSC – founded in 1961 – is the only U.S.-owned manufacturer of hyper-pure polysilicon, which is used to create silicon wafers. It is also one of just five companies in the world producing polysilicon to the purity level needed to serve the leading-edge semiconductor market.
Polysilicon serves as the essential building block for microprocessors, AI chips, memory, power devices, and solar technology. It is the material that imparts semiconductor properties to these chips, making their functionality possible.
The finalized agreement follows the preliminary agreement signed between the DoC and HSC in October, and the completion of the department’s due diligence.
“CHIPS for America’s investment in HSC will help advance supply chain security by ensuring the U.S. has a reliable, domestic supply of polysilicon – the bedrock of semiconductors,” Commerce Secretary Gina Raimondo said in a statement. “Establishing a domestic source of these materials is important for development of leading-edge chip applications, which helps bolster our economic and national security.”
The new manufacturing facility will be located on HSC’s existing campus in Hemlock, Mich., and is expected to create around 180 manufacturing jobs and over 1,000 construction positions, according to the Commerce Department.
“This agreement is a key milestone in enhancing our manufacturing capabilities as we continue to serve the leading-edge semiconductor market with high quality and sustainably made polysilicon,” said AB Ghosh, the chairman and CEO of HSC, in a statement. “The new facility will play a crucial role in strengthening the semiconductor supply chain in the United States.”
