Nik Rajkovic / news@whmi.com

Governor Gretchen Whitmer on Tuesday announced the Biden administration finalized direct funding of $325 million to Michigan-based manufacturer Hemlock Semiconductor to build a new facility supporting 180 permanent, advanced manufacturing jobs and over a thousand good-paying construction jobs.

The direct funding was made under the bipartisan CHIPS and Science Act, which is focused on bringing vital supply chains and good-paying, cutting-edge jobs home to America.

"Another big win in Michigan! Today’s game-changing investment into Hemlock Semiconductor will create more than 1,180 good-paying manufacturing and construction jobs and help our state continue to lead the future of the semiconductor industry," said Governor Whitmer. "Hemlock is a global leader and the only American-owned company that makes hyper-pure polysilicon, which is a crucial material in everything from phones to appliances to cars. By making it here in Michigan, we are bringing the supply chain home, saving manufacturers money, and creating cutting-edge opportunities for our workers. Let’s keep leading the future here in Michigan."

"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 finalized 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."

"America’s self-reliance means bringing our critical supply chains back home from places like China," said U.S. Senator Elissa Slotkin. "And semiconductor chips are absolutely critical to Michigan’s economic security and America’s national security. This award from the CHIPS Act will allow thousands of mid-Michigan workers to access the middle class, protect our auto industry, and strengthen our domestic supply chains."

Hemlock Semiconductor is one of the largest producers of hyper-pure polysilicon, a critical material for electronics and solar panels, and is the only one headquartered in America. In a growing global economy, HSC has established Michigan as a leader at the forefront of innovation and technology, with nearly every electronic device in the world containing HSC polysilicon. The production facility will increase HSC’s manufacturing capacity to support the semiconductor supply chain right here in Michigan.

In Michigan alone, with Tuesday’s announcement, the state has received nearly $1.5 billion of investments in semiconductor and electronics manufacturing. These policies have also spurred a historic recovery in manufacturing, adding 642,000 manufacturing jobs across the U.S. since 2021.

The funding represents the largest CHIPS investment in Michigan to date, and the Whitmer-Gilchrist administration is committed to keep bringing supply chains home to combat the negative consequences of offshoring chip manufacturing.

While America invented the semiconductor, we now make up only 12% of the world’s supply of chips. In 2021, Americans saw the effects of offshoring firsthand with parking lots full of nearly finished Michigan-made cars and trucks, awaiting semiconductor chips from Asia. This national chip shortage also increased the costs of electronics and appliances, resulting in delays for families and small businesses across the states.

In addition to up to $325 million from the CHIPS Act, the state of Michigan is supporting the finalized project with $40 million from the Make It in Michigan Competitiveness Fund to Hemlock Semiconductor and additional partnership from the Michigan Economic Development Corporation.

The state of Michigan has a longstanding partnership supporting HSC’s growth, including its September 2022 investment in Thomas Township. HSC has also collaborated with the Michigan Department of Environment, Great Lakes, and Energy and Governor Gretchen Whitmer’s Council on Climate Solutions, supporting a brighter and lower-carbon future in Michigan.