FOR IMMEDIATE RELEASE  

January 7, 2025

Contact: press@michigan.gov

Gov. Whitmer Announces Biden-Harris Administration’s $325 Million Investment to Expand Semiconductor Industry in Michigan, Creating Over 1,000 Manufacturing and Construction Jobs  

Michigan company Hemlock Semiconductor (HSC) secures first significant and largest finalized investment in the state from Biden-Harris administration’s bipartisan CHIPS and Science Act to create jobs, grow Saginaw’s regional economy

LANSING, Mich. – Today, Governor Gretchen Whitmer announced that the Biden-Harris administration provided finalized direct funding of $325 million to 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 direct 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.  

“Another big win in Michigan! Today’s game-changing investment into Hemlock Semiconductor will create more than 1,180 good-paying manufacturing and construction jobs and help our state continue to lead the future of the semiconductor industry,” said Governor Whitmer. “Hemlock is a global leader and the only American-owned company that makes hyper-pure polysilicon, which is a crucial material in everything from phones to appliances to cars. By making it here in Michigan, we are bringing the supply chain home, saving manufacturers money, and creating cutting-edge opportunities for our workers. Let’s keep leading the future here in Michigan.” 

“Governor Whitmer and I are committed to bringing supply chains home and creating good-paying jobs right here in Michigan,” said Lieutenant Governor Garlin Gilchrist II. “Thanks to the Biden-Harris administration and the Department of Commerce, this finalized $325 million grant to Michigan-based company HSC will do just that. This historic investment ensures Michigan’s place at the forefront of innovation and competitiveness in the semiconductor industry, fortifying our national and economic security. Thanks to the leadership of President Biden and Vice President Harris, HSC is investing here in Michigan to advance a low-carbon, digital world. Together, we’ll keep leading the world into a brighter future.” 

“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. “Because of the Biden-Harris Administration’s CHIPS and Science Act, we are proposing to invest up and down the semiconductor supply chain and support domestic materials suppliers, like HSC, that are helping drive America’s semiconductor manufacturing resurgence and technological leadership – and creating quality jobs all over the country in the process.”   

“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 finalized 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.”    

“Michigan workers are the best in the world. We know how to make things well and with precision, and this major federal investment reflects that expertise,” said U.S. Senator Gary Peters. “I’m thrilled that this funding I fought to secure is officially on its way to Hemlock Semiconductor to help expand its production of hyper-pure polysilicon and strengthen our domestic supply chains for critical semiconductor technologies, while creating thousands of good-paying jobs for people in our state.”       

“America’s self-reliance means bringing our critical supply chains back home from places like China,” said U.S. Senator Elissa Slotkin. “And semiconductor chips are absolutely critical to Michigan’s economic security and America’s national security. This award from the CHIPS Act will allow thousands of mid-Michigan workers to access the middle class, protect our auto industry, and strengthen our domestic supply chains.” 

“This funding is a game changer for mid-Michigan. With it, we are making sure that Michigan will lead the world in manufacturing, and we are creating good-paying jobs for over one thousand hard-working families,” said U.S. Congresswoman Kristen McDonald-Rivet. “Hemlock Semiconductor has reinforced their commitment to our community with an investment that will pay dividends for generations of Michigan workers. In Congress, I will continue fighting to protect American jobs and make sure that we manufacture more here in Michigan, not China.” 

New HSC Production Facility  

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. The production facility will increase HSC’s manufacturing capacity to support the semiconductor supply chain right here in Michigan.

Largest CHIPS Investment in Michigan 

The Biden-Harris administration’s CHIPS and Science Act of 2022 has worked to revitalize domestic manufacturing, create good-paying American jobs, strengthen American supply chains, and accelerate the industries of the future. In just over two years, the CHIPS Act has directly led to more than $30 billion of advanced manufacturing projects in the United States, spanning 15 states. In Michigan alone, with today’s announcement, our state has received nearly $1.5 billion of investments in semiconductor and electronics manufacturing. These policies have also spurred a historic recovery in manufacturing, adding 642,000 manufacturing jobs across the U.S. since 2021.

The funding represents the largest CHIPS investment in Michigan to date, and the Whitmer-Gilchrist administration is committed to keep bringing supply chains home to combat the negative consequences of offshoring chip manufacturing.  

While America invented the semiconductor, we now make up only 12% of the world’s supply of chips. In 2021, Americans saw the effects of offshoring firsthand with parking lots full of nearly finished Michigan-made cars and trucks, awaiting semiconductor chips from Asia. This national chip shortage also increased the costs of electronics and appliances, resulting in delays for families and small businesses across the states.  

By awarding $325 million to homegrown companies like Hemlock Semiconductor, the Biden-Harris administration is reducing America’s reliance on overseas manufacturing, ensuring supply chains start and end where they belong—right here at home. By building on a growing trend of more jobs and investments in Michigan, domestic manufacturers will be able to get chips for their products and families can go to the store or dealership to get what they need without delay.  

Ongoing Hemlock Semiconductor Partnership with State of Michigan  

Announced in February 2024, the Make it in Michigan Competitiveness Fund was developed to help companies leverage unprecedented federal opportunities made available through the Biden-Harris administration’s CHIPS Act, Inflation Reduction Act and Bipartisan Infrastructure Law. Governor Whitmer and the Michigan Infrastructure Office challenged companies applying to support workers with fair pay, good benefits, and skill development.

In addition to up to $325 million from the Biden-Harris administration’s CHIPS Act, the state of Michigan is supporting the finalized 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).  

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.” 

For more information about the Make It in Michigan Competitiveness Fund and how to apply for funding or technical assistance, please visit www.michigan.gov/whitmer/issues/michigan-infrastructure-office.