hemlock semiconductor boosts US supply chain with $325M CHIPS Act funding
Hemlock, Thursday, 9 January 2025.
Hemlock Semiconductor has secured a crucial $325 million investment from the CHIPS Act, marking a significant step for the U.S. semiconductor industry. This funding will facilitate the construction of a new manufacturing facility in Hemlock, Michigan, dedicated to producing hyper-pure polysilicon. This material is essential for advanced semiconductor chips. The investment is expected to create approximately 180 permanent manufacturing jobs and over 1,000 construction jobs. This initiative highlights the U.S. government’s strategy to enhance domestic semiconductor production and reduce reliance on foreign supply chains. Hemlock Semiconductor stands out as the only U.S.-owned manufacturer capable of producing polysilicon at such high purity levels. This development aligns with the broader CHIPS Act objectives, which aim to bolster national economic strength and security. The new facility’s operational date is projected for 2028, promising to advance U.S. leadership in the global semiconductor market.
Market impact and strategic positioning
As the sole U.S.-owned manufacturer among just five global producers of hyper-pure polysilicon [1][3], Hemlock Semiconductor’s expanded capabilities could significantly influence market dynamics. The $325 million federal investment [1][4] positions the company strategically in the semiconductor supply chain. This funding represents the largest CHIPS Act investment in Michigan to date [4], highlighting the state’s growing importance in semiconductor manufacturing.
Job creation and economic benefits
The investment is projected to generate substantial economic benefits with the creation of 180 permanent manufacturing positions and over 1,000 construction jobs [4][6]. Michigan has already attracted nearly $1.5 billion in semiconductor and electronics manufacturing investments [4]. The broader CHIPS Act initiative has catalyzed 90 new projects across 28 U.S. states [3], demonstrating significant momentum in domestic semiconductor production.
Industry growth projections
According to an SIA-Boston Consulting Group analysis, U.S. semiconductor manufacturing capacity is expected to achieve a remarkable 203% growth from 2022 to 2032 [3]. The new facility, scheduled for operation in 2028 [1], will feature advanced 300mm semiconductor manufacturing capabilities. This expansion aligns with the broader national strategy to strengthen domestic supply chains and reduce dependence on foreign manufacturers [4][6].