The Department of Commerce (DoC) announced Monday it has reached a preliminary agreement with Hemlock Semiconductor (HSC) for up to $325 million in proposed direct funding under the CHIPS and Science Act to support the construction of a new semiconductor-grade polysilicon manufacturing facility on HSC’s existing campus in Hemlock, Mich.
President Biden signed the CHIPS and Science Act into law in August 2022, making up to $52 billion of funding available to incentivize semiconductor makers to establish new manufacturing operations in the United States.
The preliminary funding deal would support HSC’s commitment to create nearly 180 manufacturing jobs and over 1,000 construction jobs in Michigan.
“Polysilicon is the bedrock of semiconductors, and it’s important we have a reliable source of this material to manufacture the chips that help support our economic and national security,” said Secretary of Commerce Gina Raimondo.
“Because of the Biden-Harris Administration’s CHIPS and Science Act, we are proposing to invest up and down the semiconductor supply chain and support domestic materials suppliers, like HSC, that are helping drive America’s semiconductor manufacturing resurgence and technological leadership – and creating quality jobs all over the country in the process,” she said.
With this proposed CHIPS investment, HSC would increase its production capacity of hyper-pure semiconductor-grade polysilicon to serve leading-edge chip applications, in addition to the broader semiconductor ecosystem, and bolster U.S. national, economic, and energy security – areas HSC has supported for decades.
Founded in 1961, HSC is the only U.S.-based manufacturer of hyper-pure polysilicon and is one of just five companies in the world producing polysilicon to the purity level needed to serve the leading-edge semiconductor market.
Polysilicon is the foundational material for microprocessors, AI chips, memory, and power devices – including solar. In fact, polysilicon is the physical substance that gives chips their semiconductor properties.
“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,” said HSC Chairman and CEO AB Ghosh. “Our customers want high quality and sustainably made polysilicon. This proposed investment demonstrates that the Biden-Harris Administration, Governor Whitmer and our Michigan congressional champions understand HSC’s unique ability to meet those demands and our crucial role in strengthening American interests. As the United States works to reshore critical supply chains, we hope to make additional investments.”
