The Biden-Harris Administration has announced preliminary plans with Hemlock Semiconductor (HSC) to expand U.S. production of semiconductor-grade polysilicon, a key material used in the manufacturing of semiconductors. This expansion is part of the administration’s efforts to strengthen the U.S. semiconductor supply chain through the CHIPS and Science Act. The U.S. Department of Commerce and HSC signed a non-binding agreement outlining terms for up to $325 million in funding to support the project.
The investment would allow for the construction of a new manufacturing facility on HSC’s campus in Hemlock, Michigan, which will focus on producing and purifying hyper-pure polysilicon. This material is essential for the production of chips used in a variety of technologies, including microprocessors, artificial intelligence (AI), and electric vehicles. The project is expected to create 180 manufacturing jobs and over 1,000 construction jobs.
Importance of Polysilicon in Semiconductor Manufacturing
Polysilicon is a critical component for manufacturing semiconductors, which power everything from smartphones to AI systems. HSC is the only U.S.-based manufacturer producing polysilicon at the level of purity required for cutting-edge semiconductor applications, making this expansion vital for securing domestic supplies. This move aims to increase the U.S. capacity to produce high-quality polysilicon, strengthening both national security and economic resilience.
U.S. Secretary of Commerce Gina Raimondo highlighted the importance of this material for both the economy and national security. She noted that the Biden-Harris Administration’s CHIPS and Science Act is enabling the U.S. to invest across the entire semiconductor supply chain, from materials like polysilicon to chip manufacturing itself. This would help America remain a leader in advanced technology while creating thousands of good-paying jobs across the country.
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Boosting Michigan's Role in Semiconductor and Solar Industries
Hemlock Semiconductor, founded in 1961, has been a cornerstone of the polysilicon industry for decades. It is one of just five companies in the world producing polysilicon to the high purity standards required for advanced semiconductor technologies. In addition to serving the semiconductor industry, HSC also plays a major role in the solar industry, producing polysilicon for solar panels. With the proposed CHIPS Act investment, HSC is poised to expand its capacity in both industries, further solidifying its position as a global leader in polysilicon production.
HSC’s Chairman and CEO, AB Ghosh, expressed pride in the company’s role as a key supplier to the semiconductor and solar industries. He noted that this investment will allow HSC to continue delivering high-quality polysilicon while helping the U.S. reduce its reliance on foreign sources for critical materials.
Strengthening Local Workforce and Communities
The expansion project will not only create jobs in manufacturing and construction but will also boost the local workforce through training and educational programs. HSC has partnered with institutions like Delta College and Saginaw Career Complex to offer training programs that connect local communities to the growing semiconductor industry. Additionally, HSC is involved in Michigan’s Tri-Share initiative, a child care cost-sharing program aimed at helping workers access affordable child care.
Sustainability and Environmental Impact
HSC is committed to environmental sustainability and is working closely with Michigan’s government to reduce carbon emissions across the semiconductor and solar supply chains. The company has collaborated with the Michigan Department of Environment, Great Lakes, and Energy (EGLE) to guide the state toward a low-carbon future. This focus on sustainability aligns with the broader goals of the CHIPS Act, which seeks to support technologies that contribute to cleaner energy and reduce environmental impact.
Looking Ahead: CHIPS for America
The CHIPS and Science Act, signed by President Biden and Vice President Harris, aims to revitalize America’s semiconductor industry and reduce dependence on foreign suppliers. Over $36 billion in funding has already been allocated across 20 states, with the goal of creating over 125,000 jobs. The CHIPS for America initiative includes support for manufacturing incentives and research programs designed to drive innovation in the semiconductor industry.
As part of this effort, the collaboration with HSC marks a significant step toward reshoring critical components of the semiconductor supply chain. By expanding domestic production of semiconductor-grade polysilicon, the U.S. is poised to enhance its technological leadership and ensure a more secure and resilient supply chain for the future.
For more information on the CHIPS for America program, visit www.chips.gov.
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