Biden administration finalizes $325 million semiconductor grant in mid-Michigan

Grant Schwab, The Detroit News on Jan 7, 2025

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WASHINGTON — The federal government has officially awarded up to $325 million to a mid-Michigan company to expand its semiconductor-grade polysilicon manufacturing, the Biden administration said Tuesday.

The award, announced on a preliminary basis some two weeks before Election Day in October 2024, will go directly to Hemlock Semiconductor to expand a manufacturing facility in Saginaw County. It uses funds from the CHIPS and Science Act, one of outgoing President Joe Biden's signature legislative achievements.

"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,” U.S. Secretary of Commerce Gina Raimondo said in a press release.

Officials and lawmakers said in October that the project would boost Michigan’s standing as a crucial part of the domestic semiconductor supply chain and help prevent the kind of disruptions to key industries — like Michigan’s automotive sector — that occurred due to computer chip shortages during the COVID-19 pandemic. Hemlock also supplies its material for solar panels.

The Commerce Department has estimated the project would create over 1,000 temporary construction jobs and about 180 permanent manufacturing jobs. Construction is expected to take place between 2026 and 2028, with the facility reaching full production capacity by late 2028 or early 2029.

"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," HSC Chairman and CEO AB Ghosh said.

"The support from the Department of Commerce and our dedicated partners at all levels of government has been instrumental in making this possible," he added. "We look forward to contributing to the revitalization of the domestic supply chain, creating good-paying jobs and driving technological leadership in the semiconductor industry."

“Michigan workers are the best in the world. We know how to make things well and with precision, and this major federal investment reflects that expertise,” U.S. Sen. Gary Peters, D-Bloomfield Township, said in a Tuesday statement.

He added: “I’m thrilled that this funding I fought to secure is officially on its way to Hemlock Semiconductor to help expand its production of hyper-pure polysilicon and strengthen our domestic supply chains for critical semiconductor technologies, while creating thousands of good-paying jobs for people in our state.”

Peters previously sponsored the Investing in Domestic Semiconductor Manufacturing Act, which was added as a provision to the final CHIPS package. His bill sought to ensure that U.S. companies producing materials and equipment necessary for semiconductors — not just the semiconductors themselves — qualify for federal incentives.

Hemlock Semiconductor, also known as HSC, was founded in Michigan in 1968. It is one of five companies globally that manufactures polysilicon pure enough for usage in advanced computer chips. It's also the largest consumer of electrical power at a single site in the state.

The expanding HSC facility is next to a proposed Corning Inc. solar component manufacturing plant in Thomas Township. That project also won a major federal tax credit in October 2024, along with state-level support earlier in the year.

The Detroit News has previously reported that Michigan is contending to land another major, multibillion-dollar semiconductor development project in Genesee County. It is unclear if an announcement will come in the final two weeks of Biden's presidency.

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