The U.S. Department of Commerce has awarded Hemlock Semiconductor (HSC) a significant $325 million in direct funding under the CHIPS Incentives Program. This substantial investment will support the construction of a new manufacturing facility in Hemlock, Michigan, and is expected to create approximately 180 manufacturing jobs and over 1,000 construction jobs over time. The award follows the previously signed preliminary memorandum of terms, announced on October 21, 2024, and the completion of the Department's due diligence.

The CHIPS for America 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. Establishing a domestic source of these materials is important for developing leading-edge chip applications, which helps bolster our economic and national security. Through targeted investments like this, the Biden-Harris Administration is driving technological innovation in industries of the future and creating jobs across the country.

HSC is the only U.S.-owned manufacturer of hyper-pure polysilicon and is one of just five companies in the world producing polysilicon to the purity level needed to serve the leading-edge semiconductor market. The new facility will be dedicated to the production and purification of hyper-pure semiconductor-grade polysilicon, which is the foundational material for microprocessors, artificial intelligence chips, and memory and power devices. The investment is expected to benefit several Michigan industries, including the auto industry.

"We are pleased to announce the signing of a direct funding agreement with the Department of Commerce under the CHIPS Act. This agreement is a key milestone in enhancing our manufacturing capabilities as we continue to serve the leading-edge semiconductor market with high quality and sustainably made polysilicon," said HSC Chairman and CEO AB Ghosh. "The new facility will play a crucial role in strengthening the semiconductor supply chain in the United States. The support from the Department of Commerce and our dedicated partners at all levels of government has been instrumental in making this possible. We look forward to contributing to the revitalization of the domestic supply chain, creating good-paying jobs and driving technological leadership in the semiconductor industry."

The CHIPS and Science Act, signed into law by President Biden in August 2022, authorizes a $52 billion federal investment over the next five years in boosting domestic semiconductor manufacturing. The new law provides a 25 percent tax credit for new or expanded facilities that make semiconductors or related equipment. These investments in next-generation manufacturing techniques are expected to provide support along the entire semiconductor supply chain – from research and development to critical inputs like HSC's hyper-pure polysilicon.

In conclusion, the $325 million CHIPS funding awarded to Hemlock Semiconductor will significantly enhance the company's production capacity and market share in the semiconductor industry. The investment will create jobs, strengthen domestic supply chains, and solidify HSC's position as a global leader in the industry. This funding aligns with the Biden-Harris administration's goals for supply chain resilience and national security by bolstering domestic manufacturing, driving technological innovation, and creating jobs across the country.