The U.S. Department of Commerce has announced a significant award under the CHIPS Incentives Program, providing Hemlock Semiconductor (HSC) with up to $325 million in direct funding. This investment is aimed at bolstering the production capacity of semiconductor-grade polysilicon in the United States. HSC stands as the sole U.S.-owned manufacturer of hyper-pure polysilicon and is among only five global companies producing this material at the required purity level for advanced semiconductor applications.
The funding will facilitate the construction of a new manufacturing facility in Hemlock, Michigan, anticipated to generate approximately 180 manufacturing jobs and over 1,000 construction jobs. The announcement follows a preliminary memorandum signed on October 21, 2024, and subsequent due diligence by the Department of Commerce. The distribution of funds will be contingent upon HSC meeting specific project milestones.
"CHIPS for America's investment in HSC will help advance supply chain security by ensuring the U.S. has a reliable, domestic supply of polysilicon – the bedrock of semiconductors,” stated U.S. Secretary of Commerce Gina Raimondo. She emphasized that establishing a domestic source for these materials is crucial for developing leading-edge chip applications and strengthening economic and national security.
National Economic Advisor Lael Brainard highlighted the importance of this development: “Nearly every single semiconductor made in America relies on the kind of advanced polysilicon that this investment will enable Hemlock to produce.” She added that it would reinforce Michigan's status as a manufacturing hub.
HSC Chairman and CEO AB Ghosh expressed satisfaction with the agreement: "We are pleased to announce the signing of a direct funding agreement with the Department of Commerce under the CHIPS Act." He noted that this milestone enhances their manufacturing capabilities while contributing to job creation and technological leadership in the semiconductor industry.
For further details about this award, interested parties can visit the CHIPS for America website.
According to CHIPS Notice of Funding Opportunity guidelines, recipients like HSC will receive funding based on achieving specific construction, production, and commercial milestones. The program monitors each award's performance through financial and programmatic reports aligned with established terms and conditions.
CHIPS for America has already allocated over $33 billion out of more than $36 billion proposed incentives funding across 21 states, potentially creating over 125,000 jobs. This initiative forms part of President Biden and Vice President Harris’s broader economic strategy focused on stimulating private sector investment, fostering job creation within America, enhancing domestic production capabilities, and revitalizing neglected communities.
