Key Point: “The federal government has officially awarded up to $325 million to a mid-Michigan company to expand its semiconductor-grade polysilicon manufacturing … Officials and lawmakers said in October that the project would boost Michigan’s standing as a crucial part of the domestic semiconductor supply chain and help prevent the kind of disruptions to key industries — like Michigan’s automotive sector — that occurred due to computer chip shortages during the COVID-19 pandemic.”

Detroit News: Biden administration finalizes $325 million semiconductor grant in mid-Michigan

By Grant Schwab

• The federal government has officially awarded up to $325 million to a mid-Michigan company to expand its semiconductor-grade polysilicon manufacturing, the Biden administration said Tuesday.

• The award, announced on a preliminary basis some two weeks before Election Day in October 2024, will go directly to Hemlock Semiconductor to expand a manufacturing facility in Saginaw County. It uses funds from the CHIPS and Science Act, one of outgoing President Joe Biden’s signature legislative achievements.

• “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,” U.S. Secretary of Commerce Gina Raimondo said in a press release.

• Officials and lawmakers said in October that the project would boost Michigan’s standing as a crucial part of the domestic semiconductor supply chain and help prevent the kind of disruptions to key industries — like Michigan’s automotive sector — that occurred due to computer chip shortages during the COVID-19 pandemic. Hemlock also supplies its material for solar panels.

• The Commerce Department has estimated the project would create over 1,000 temporary construction jobs and about 180 permanent manufacturing jobs. Construction is expected to take place between 2026 and 2028, with the facility reaching full production capacity by late 2028 or early 2029.

• Newly elected U.S. Rep. Kristen McDonald Rivet, D-Bay City, cheered the move as a boon for her district and the state.

• “This funding is a game changer for mid-Michigan,” she said. “Hemlock Semiconductor has reinforced their commitment to our community with an investment that will pay dividends for generations of Michigan workers.”