Hemlock Semi secures Chips Act funding
The U.S. Department of Commerce and Hemlock Semiconductor (HSC) have signed a non-binding preliminary memorandum of terms (PMT) to provide up to USD 325 million in funding under the CHIPS and Science Act to expand the domestic production capacity of semiconductor-grade polysilicon.
The proposed funding would support the construction of a new manufacturing facility on HSC’s existing campus in Hemlock, Michigan, dedicated to the production and purification of hyper-pure semiconductor-grade polysilicon. The proposed project is estimated to create nearly 180 manufacturing jobs and over 1,000 construction jobs over time.
Founded in 1961, HSC is the only US-based 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.
With this proposed CHIPS investment, HSC would increase its production capacity of hyper-pure semiconductor-grade polysilicon to serve leading-edge chip applications, in addition to the broader semiconductor ecosystem. This proposed funding would be the first significant investment in HSC’s semiconductor capacity in more than two decades.
The proposed direct funding includes USD 5 million to support the development of the company’s production and construction workforce. HSC has partnered with Delta College and Saginaw Career Complex to support and create programs that connect the local community to semiconductor training and employment opportunities.
“HSC is proud to be a manufacturing powerhouse for two vital industries of the future—semiconductor and solar. Bolstered by the CHIPS Act, we are planning for a once-in-a-generation investment in advanced technologies to continue serving as a top polysilicon supplier to the leading-edge semiconductor market,” says HSC Chairman and CEO AB Ghosh, in a press release.
