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Michigan company lands major federal grant to boost semiconductor component production

Hemlock Semiconductor (HSC) is a major manufacturer of a component of chips that can be found in cars, cell phones, TVs and other technological devices.
Steve Carmody
/
Michigan Public
Hemlock Semiconductor (HSC) is a major manufacturer of a component of chips that can be found in cars, cell phones, TVs and other technological devices.

The Biden administration has awarded up to $325 million to expand polysilicon manufacturing in Saginaw County.

Hemlock Semiconductor (HSC) is a major manufacturer of polysilicon — it's a component of semiconductor chips that are found in cars, cell phones, TVs and other technological devices.

“All of the leading edge semiconductor manufacturers that we have signed term sheets with rely on the high purity polysilicon that Hemlock produces,” said Gina Raimondo, the U.S. Secretary of Commerce.

Governor Gretchen Whitmer calls the grant “a big win for Michigan.” The funding is expected to help create hundreds of construction and manufacturing jobs.

The money comes from the $52 billion CHIPS and Science Act, passed in 2022 to boost advanced semiconductor manufacturing in the U.S. At the time, a shortage of chips was grinding American manufacturing to a slow crawl.

Hemlock Semiconductor is in the midst of an expansion boom. Two years ago, the company broke ground on a $375 million project that is unrelated to the new grant.

“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 CEO AB Ghosh. “Our customers want high quality and sustainably made polysilicon.”

But there is a potential catch with the latest grant.

Hemlock is not receiving the grant money all at once. The money will be contingent on the company meeting milestones tied to the grant. It’s possible a change in administration may affect that process.

Still, White House National Economic Advisor Lael Brainard said the CHIPS act money is good for Michigan.

 “(The grant) will help ensure Michigan remains at the forefront of advanced manufacturing for years into the future,” said Brainard.

Steve Carmody has been a reporter for Michigan Public since 2005. Steve previously worked at public radio and television stations in Florida, Oklahoma and Kentucky, and also has extensive experience in commercial broadcasting.