President Joe Biden delivers remarks on the South Lawn of the White House Tuesday, August 9, 2022, prior to signing H.R. 4346, “The CHIPS and Science Act of 2022”. | Official White House Photo by Erin Scott
The U.S. Department of Commerce announced Tuesday that $325 million in direct federal funding had been awarded to Saginaw County-based Hemlock Semiconductor (HSC), which was expected to create approximately 180 permanent manufacturing jobs and over 1,000 construction jobs.
The money will be used to construct a new manufacturing facility for HSC, which the department noted was “the only U.S.-owned 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.”
The funding, which was made available through the CHIPS Incentives Program’s Funding Opportunity for Commercial Fabrication facilities, was hailed by newly sworn-in U.S. Rep. Kristen McDonald Rivet (D-Bay City), whose 8th District includes the Hemlock plant.
“This funding is a game changer for mid-Michigan. With it, we are making sure that Michigan will lead the world in manufacturing, and we are creating good-paying jobs for over one thousand hard-working families,” said McDonald Rivet. “Hemlock Semiconductor has reinforced their commitment to our community with an investment that will pay dividends for generations of Michigan workers. In Congress, I will continue fighting to protect American jobs and make sure that we manufacture more here in Michigan, not China.”
The money is part of the Biden administration’s $53 billion CHIPS and Science Act of 2022, which aimed to strengthen domestic semiconductor manufacturing, supply chains and the innovation economy.
U.S. Sens. Gary Peters (D-Bloomfield Twp.) and Elissa Slotkin (D-Holly), both of whom championed the CHIPS Act, also praised the award.
“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,” said Peters. “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.”
In October 2024, the department and Hemlock Semiconductor signed a non-binding preliminary memorandum of terms around the funding. Tuesday’s announcement confirms the department has completed their due diligence on the project.
“America’s self-reliance means bringing our critical supply chains back home from places like China. And semiconductor chips are absolutely critical to Michigan’s economic security and America’s national security,” said Slotkin. “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.”
GET THE MORNING HEADLINES.