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Proposed funding would bring new semiconductor computer chip plant to Michigan

The federal government has proposed $325 million in funding for Michigan-based manufacturer Hemlock Semiconductor (HSC) to build a new facility supporting 180 permanent, advanced manufacturing jobs and over a thousand good-paying construction jobs.

The proposed direct funding was made possible through the bipartisan CHIPS and Science Act, which is focused on bringing vital supply chains and good-paying, cutting-edge jobs home to America.

“HSC is one of many Michigan-based companies that is helping us lead the future of advanced manufacturing. Thanks to the Biden-Harris administration’s bipartisan CHIPS and Science Act and the U.S. Department of Commerce, we are ensuring HSC’s global leadership in the powerful domestic supply chain to manufacture semiconductor chips needed for everything from computers and phones to AI applications,” said Gov. Gretchen Whitmer.

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Hemlock Semiconductor is one of the largest producers of hyper-pure polysilicon, a critical material for electronics and solar panels, and is the only one headquartered in America. In a growing global economy, HSC has established Michigan as a leader at the forefront of innovation and technology, with nearly every electronic device in the world containing HSC polysilicon.

This production facility will increase HSC’s manufacturing capacity to support the semiconductor supply chain right here in Michigan. The proposed funding represents the largest CHIPS investment in Michigan to date.

American-made semiconductor chips make up only 12% of the world’s supply. The national chip shortage in 2021 caused delays in Michigan-made cars and trucks, and increased the costs of electronics and appliances.

In addition to up to $325 million from the CHIPS Act, the state of Michigan is supporting the proposed project with $40 million from the Make It in Michigan Competitiveness Fund to Hemlock Semiconductor and additional partnership from the Michigan Economic Development Corporation (MEDC).

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