The U.S. Department of Commerce awarded Hemlock Semiconductor (HSC) up to $325 million in direct funding on January 7, 2025, under the CHIPS Incentives Program’s Funding Opportunity for Commercial Fabrication Facilities. The award will support construction of a new manufacturing facility in Hemlock, Michigan. HSC is the only U.S.-owned manufacturer of hyper-pure polysilicon and one of five companies worldwide producing polysilicon to the purity level required for the leading-edge semiconductor market. Funds will be distributed as HSC completes project milestones.
What it means
The new Hemlock, Michigan facility is expected to create approximately 180 manufacturing jobs and more than 1,000 construction jobs over time, according to the Commerce Department. Secretary of Commerce Gina Raimondo said the investment “will help advance supply chain security by ensuring the U.S. has a reliable, domestic supply of polysilicon – the bedrock of semiconductors.” National Economic Advisor Lael Brainard said that “nearly every single semiconductor made in America relies on the kind of advanced polysilicon that this investment will enable Hemlock to produce.”
The award follows a preliminary memorandum of terms announced October 21, 2024, and was finalized after the Department completed due diligence. With this award, CHIPS for America has now awarded $33 billion of more than $36 billion in proposed incentives funding, spanning announcements across 21 states. The Commerce Department said those announcements are expected to create more than 125,000 jobs in total, and that $450 billion in private investment in semiconductors and electronics has been announced since the start of the Biden-Harris Administration.
Key facts
- Award amount: up to $325 million in direct funding
- Recipient: Hemlock Semiconductor (HSC), Hemlock, Michigan
- Program: CHIPS Incentives Program, Funding Opportunity for Commercial Fabrication Facilities
- Manufacturing jobs expected: approximately 180
- Construction jobs expected: 1,000+ over time
- HSC is the only U.S.-owned manufacturer of hyper-pure polysilicon; one of 5 such producers globally
- Preliminary memorandum of terms announced: October 21, 2024
- CHIPS for America total awarded to date: $33 billion of $36 billion+ in proposed incentives, across 21 states
- HSC Chairman and CEO: AB Ghosh
Source: U.S. Department of Commerce / NIST news release (nist.gov)