LANSING, MI — Governor Gretchen Whitmer announces the finalized direct funding of $325 million to Michigan-based manufacturer Hemlock Semiconductor (HSC) to build a new facility supporting 180 permanent, advanced manufacturing jobs and over a thousand construction jobs. The direct funding was made under the Biden-Harris administration’s bipartisan CHIPS and Science Act, which is focused on bringing vital supply chains and good-paying jobs to America.
“[This] game-changing investment into Hemlock Semiconductor will create more than 1,180 good-paying manufacturing and construction jobs and help our state continue to lead the future of the semiconductor industry,” Whitmer said. “Hemlock is a global leader and the only American-owned company that makes hyper-pure polysilicon, which is a crucial material in everything from phones to appliances to cars. By making it here in Michigan, we are bringing the supply chain home, saving manufacturers money, and creating cutting-edge opportunities for our workers. Let’s keep leading the future here in Michigan.”
Hemlock Semiconductor is one of the largest producers of hyper-pure polysilicon, a critical material for electronics and solar panels, and it is the only one headquartered in America. In a growing global economy, HSC has established Michigan as a leader at the forefront of innovation and technology, with nearly every electronic device in the world containing HSC polysilicon. The production facility will increase HSC’s manufacturing capacity to support the semiconductor supply chain in Michigan.
The CHIPS and Science Act of 2022 has worked to revitalize domestic manufacturing, create good-paying American jobs, strengthen American supply chains, and accelerate the industries of the future. In just over two years, the CHIPS Act has directly led to more than $30 billion of advanced manufacturing projects in the United States, spanning 15 states. In Michigan alone, with this announcement, the state has received nearly $1.5 billion of investments in semiconductor and electronics manufacturing. The funding represents the largest CHIPS investment in Michigan to date. These policies have also spurred a historic recovery in manufacturing, adding 642,000 manufacturing jobs across the U.S. since 2021.
While America invented the semiconductor, the country now makes up only 12 percent of the world’s supply of chips. In 2021, Americans saw the effects of offshoring firsthand with parking lots full of nearly finished Michigan-made cars and trucks, awaiting semiconductor chips from Asia. This national chip shortage also increased the costs of electronics and appliances, resulting in delays for families and small businesses across the states.
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By awarding $325 million to homegrown companies like Hemlock Semiconductor, America will be less reliant on overseas manufacturing, ensuring supply chains start and end here. By building on a growing trend of more jobs and investments in Michigan, domestic manufacturers will be able to get chips for their products and families can go to the store or dealership to get what they need without delay.
Announced in February 2024, the Make it in Michigan Competitiveness Fund was developed to help companies leverage unprecedented federal opportunities made available through the CHIPS Act, Inflation Reduction Act, and Bipartisan Infrastructure Law. Whitmer and the Michigan Infrastructure Office challenged companies applying to support workers with fair pay, good benefits, and skill development.
In addition to up to $325 million from the CHIPS Act, the state of Michigan is supporting the finalized project with $40 million from the Make It in Michigan Competitiveness Fund to Hemlock Semiconductor and additional partnership from the Michigan Economic Development Corporation.
The state of Michigan has a long-standing partnership supporting HSC’s growth, including its September 2022 investment in Thomas Township. HSC has also collaborated with the Michigan Department of Environment, Great Lakes, and Energy and Whitmer’s Council on Climate Solutions, supporting a lower-carbon future in Michigan.
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Including the investments announced, the Competitiveness Fund has invested $185.9 million, leveraging $961 million in federal funds, a return on investment of more than 5:1.
“[This] announcement of a $325 million investment showcases Michigan’s growing role as a leader in advanced manufacturing and innovation. Thanks to the CHIPS and Science Act, Michigan will be home to 180 new good-paying jobs, enhancing our state’s ability to produce critical semiconductor chips right here at home,” said Zachary Kolodin, Michigan’s Chief Infrastructure Office and Director of the Michigan Infrastructure Office. “This investment, paired with a $40 million match from the Make It In Michigan Competitiveness Fund, attracts top talent, supports sustainable economic growth, and ensures the technologies we rely on every day are built in America. The Battery and Advanced Manufacturing Challenge has leveraged $125 million in state dollars to pull down $630 million in federal funding. Michigan is proud to be a leader in bringing home federal investments that are making a real, positive impact in our communities.”
