Hemlock Semiconductor to Open New Plant in Michigan

Governor Gretchen Whitmer of Michigan today confirmed that the Biden-Harris administration provided the proposed direct funding of $325 million to Michigan-based manufacturer Hemlock Semiconductor (HSC)*

“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. Together, we are strengthening national and economic security by ensuring supply chains, good-paying jobs, and cutting-edge investments are where they belong—here at home. Let’s build the future we all want—one where America leads,” said Whitmer.

“Polysilicon is the bedrock of semiconductors, and it’s important we have a reliable source of this material to manufacture the chips that help support our economic and national security,” said U.S. Secretary of Commerce Gina Raimondo.

More than a thousand good-paying construction jobs will build a new facility supporting 180 permanent, advanced manufacturing jobs. The funding was made under the Biden-Harris administration’s bipartisan CHIPS and Science Act, which is focused on bringing vital supply chains and good-paying, cutting-edge jobs home to America. All told the Biden Administration has created more jobs than the previous four Republican mis-administrations.

“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,” said HSC Chairman and CEO AB Ghosh. “Our customers want high quality and sustainably made polysilicon. This proposed investment demonstrates that the Biden-Harris administration, Governor Whitmer and our Michigan congressional champions understand HSC’s unique ability to meet those demands and our crucial role in strengthening American interests. As the United States works to reshore critical supply chains, we hope to make additional investments.”

*Hemlock Semiconductor

“Based in Michigan, Hemlock Semiconductor (HSC) manufactures hyper-pure polysilicon for the electronic and solar power industries. The production of polysilicon is generally energy intensive. At full production, HSC is the largest single-site user of electricity in the state of Michigan and the largest customer of utility Consumers Energy. HSC represents a manufacturing plant with a high-intensity energy load but also a degree of load flexibility, making its example a useful and relevant case study for other industrial leaders to consider. Consumers Energy developed a rate, known as the Long-term Industrial Load Retention Rate (LTILRR), with both real-time pricing (RTP) and demand- based attributes for Hemlock, to further encourage load flexibility. Prior to the rollout of LTILRR, Hemlock experimented with time-based load shaping. To advance its corporate commitment to moving the world toward a greener future, HSC leaders also teamed up with WattTime to assess the current emissions impact of its operations and the potential benefits of incorporating an Automated Emissions Reduction (AER) program,” says HSC.

The state of Michigan has a longstanding partnership supporting HSC’s growth, including its September 2022 investment in Thomas Township. HSC has also collaborated with the Michigan Department of Environment, Great Lakes, and Energy (EGLE) and Governor Gretchen Whitmer’s Council on Climate Solutions, supporting a brighter and lower-carbon future in Michigan.

 Including the investments announced today, the Competitiveness Fund has invested $185.9 million, leveraging $961 million in federal funds, a return on investment of more than 5:1.

“Today’s announcement of a $325 million investment showcases Michigan’s growing role as a leader in advanced manufacturing and innovation. Thanks to the CHIPS and Science Act, Michigan will be home to 180 new good-paying jobs, enhancing our state’s ability to produce critical semiconductor chips right here at home,” said Zachary Kolodin, Michigan’s Chief Infrastructure Office and Director of the Michigan Infrastructure Office.

“This investment, paired with a $40 million match from the Make It In Michigan Competitiveness Fund, attracts top talent, supports sustainable economic growth, and ensures the technologies we rely on every day are built in America. The Battery and Advanced Manufacturing Challenge has leveraged $125 million in state dollars to pull down $630 million in federal funding. Michigan is proud to be a leader in bringing home federal investments that are making a real, positive impact in our communities,” said Kolodin.

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