
The CHIPS and Science Act is powering economic growth in Michigan through a $325 million investment in Hemlock Semiconductor for polysilicon production, yet the full impact of this initiative remains to be seen.
At a Glance
- The U.S. has allocated $325 million to Hemlock Semiconductor to expand polysilicon manufacturing in Michigan.
- The initiative will create up to 1,000 construction jobs and 180 permanent manufacturing jobs.
- The funding aims to strengthen U.S. supply chains and bolster domestic production.
- Michigan’s role in advanced manufacturing and innovation is poised for enhancement.
Federal Investment in Michigan Manufacturing
The U.S. government is channeling $325 million through the CHIPS and Science Act to Hemlock Semiconductor (HSC) to expand semiconductor-grade polysilicon manufacturing in Saginaw County, Michigan. The facility is expected to create 1,000 construction jobs beginning in 2026 and 180 permanent manufacturing jobs when production commences in 2028. Hemlock Semiconductor is currently the only U.S.-headquartered producer of hyper-pure polysilicon, a critical component used in semiconductor chips and various electronic devices. This venture, supported by state and federal funding, underscores a concerted effort to secure a reliable source of this essential material.
Economic development leaders and government officials view this grant as a significant boon for the region, enhancing its stature in high-tech manufacturing and innovation. Michigan has already committed an additional $40 million from the Make It in Michigan Competitiveness Fund to support this project, aiming to further stimulate the local economy. HSC not only contributes to domestic manufacturing but is also a vital supplier for the semiconductor and solar industries globally.
A $325 million grant for Hemlock Semiconductor, announced Monday, is expected to bring 180 advanced manufacturing jobs and over a thousand construction jobs to Saginaw County. https://t.co/szj5hELIzn
— ABC12WJRT (@ABC12WJRT) October 21, 2024
CHIPS Act Strengthens U.S. Supply Chains
The CHIPS and Science Act, the driving force behind this investment, aims to fortify domestic supply chains and promote well-paying jobs in the United States. The initiative’s broader scope includes the allocation of over $36 billion across 20 states, contributing to the creation of more than 125,000 jobs focused on research and innovation. This aligns with a national strategy to reclaim manufacturing strongly within the country, reducing dependency on overseas production and bolstering national security.
“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.” noted U.S. Secretary of Commerce Gina Raimondo.
Michigan’s strategic investment positions it as a proactive participant in bolstering U.S. manufacturing capacity. With the CHIPS for America initiative, substantial economic growth and industrial revival in various sectors are anticipated. The state already houses significant investments and projects earmarked for enhancing semiconductor and electronics manufacturing, amounting to over $1.5 billion. The Hemlock investment is expected to attract further industry players, bolstering Michigan’s high-tech sector.
🚨Big news from the Biden-Harris administration🚨
Today, they announced the largest CHIPS investment in Michigan yet: $325 Million in Hemlock Semiconductor, a proud Michigan-based company and one of the world's largest polysilicon producers.https://t.co/BsETD7ure5
— Governor Gretchen Whitmer (@GovWhitmer) October 21, 2024
A New Era for Polysilicon Production
The investment in Hemlock Semiconductor symbolizes more than just job creation; it is pivotal for advancing polysilicon production on a national scale. This funding further solidifies HSC’s position as a premier polysilicon supplier in the U.S., capable of leading-edge semiconductor market demands. Senators Gary Peters and Debbie Stabenow, alongside other prominent figures, have been instrumental in securing approvals and facilitating this project to fruition. Their advocacy in passing the CHIPS and Science Act lays foundational progress for domestic manufacturing needs.
“Today, cutting-edge Michigan company Hemlock Semiconductor secured a proposed $325 million investment from the Biden-Harris administration to create 180 good-paying jobs and build a new facility to help make polysilicon, a critical material that’s found in nearly every electronic device in the world,” said Governor Gretchen Whitmer
Therefore, the investment carries strategic national importance, promising sustainable growth and technological leadership. It represents a critical step forward in reinforcing America’s position within the global semiconductor supply chain, an endeavor that is increasingly synonymous with economic resilience and competitive technological capabilities. As these developments unfold, the effects are expected to ripple through the manufacturing landscape, potentially drawing more companies into the region and ensuring sustained industrial momentum for years to come.
Sources:
- https://www.mlive.com/news/saginaw-bay-city/2024/10/officials-cheer-job-growth-technology-investment-at-hemlock-semiconductor.html
- https://www.michiganbusiness.org/press-releases/2024/10/325-million-investment-hemlock-semiconductor/
- https://www.peters.senate.gov/newsroom/press-releases/peters-and-stabenow-announce-michigans-hemlock-semiconductor-will-receive-major-federal-grant-from-chips-and-science-act
- https://www.themorningsun.com/2024/10/22/mid-michigan-semiconductor-manufacturer-to-receive-325m-federal-grant/
- https://www.theepochtimes.com/us/federal-government-to-provide-325-million-for-new-michigan-semiconductor-factory-5745518
- https://www.abc12.com/news/local/hemlock-semiconductor-receives-325m-in-federal-chips-act-funding/article_f46ebda0-8ff9-11ef-9ce2-57d16b9eed5a.html
- https://www.michigan.gov/whitmer/news/press-releases/2024/10/21/gov-whitmer-announces-biden-harris-administration