Hemlock Semiconductor to Receive $325 Million for New Facility Under CHIPS Act

Hemlock Semiconductor

Hemlock Semiconductor (HSC), the only U.S.-based producer of hyper-pure polysilicon, has been preliminarily granted $325 million in funding under the CHIPS Act by the U.S. Department of Commerce. This funding aims to boost domestic semiconductor manufacturing and reduce reliance on international supply chains.

The grant, currently in a non-binding preliminary memorandum of terms phase, is intended to support the construction of a new manufacturing facility on HSC's existing campus in Hemlock, Michigan. The facility will focus on increasing the production of hyper-pure polysilicon, a critical material used in artificial intelligence (AI) chips, microprocessors, and memory devices.

Economic Impact

If finalized, the investment is expected to generate nearly 180 high-skill manufacturing jobs and over 1,000 construction jobs, significantly contributing to the local economy.

The Role of the CHIPS Act

The CHIPS Act, a landmark U.S. policy initiative, is designed to fund domestic research and manufacturing of semiconductors to enhance national security and technological competitiveness. HSC’s expanded capacity under this program will play a pivotal role in meeting the growing demand for semiconductor-grade materials in emerging technologies.

This strategic investment reinforces HSC's position as a critical player in the U.S. semiconductor supply chain, supporting advancements in artificial intelligence, computing, and other high-tech applications.