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Home » Department of Commerce Awards Hemlock Semiconductor $325M

Department of Commerce Awards Hemlock Semiconductor $325M

January 7, 2025
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The U.S. Department of Commerce has awarded Hemlock Semiconductor (HSC) up to $325 million under the CHIPS Incentives Program to strengthen domestic production of hyper-pure polysilicon, a critical material for advanced semiconductor manufacturing. The funding will support the construction of a new manufacturing facility in Hemlock, Michigan, with expectations to create approximately 180 permanent manufacturing jobs and over 1,000 construction jobs.

Hemlock Semiconductor is the only U.S.-owned manufacturer of hyper-pure polysilicon and one of just five companies globally capable of producing polysilicon to the purity levels required for leading-edge semiconductor applications. The funding will be distributed based on the completion of key construction, production, and commercial milestones. This investment aims to secure a reliable domestic supply of polysilicon, crucial for the U.S. semiconductor supply chain.

The award is part of the Department of Commerce’s CHIPS for America initiative, which has committed over $33 billion in direct funding across 21 states, with a projected impact of over 125,000 jobs nationwide. HSC’s new facility will support advanced chip production, reduce reliance on foreign supply chains, and bolster Michigan’s role as a hub for high-tech manufacturing.

• Funding Amount: Up to $325 million under the CHIPS Incentives Program.

• Facility Location: Hemlock, Michigan.

• Job Creation: Approximately 180 permanent manufacturing jobs and over 1,000 construction jobs.

• Industry Impact: Supports domestic polysilicon production for advanced semiconductor manufacturing.

• Milestone-Based Funding: Distributed based on construction, production, and commercial benchmarks.

• National Initiative: Part of the CHIPS for America program, which has allocated $33 billion in direct funding across 21 states.

“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,” said U.S. Secretary of Commerce Gina Raimondo. “Establishing a domestic source of these materials is important for the development of leading-edge chip applications, which helps bolster our economic and national security.”

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Jim Carroll

Editor and Publisher, Converge! Network Digest, Optical Networks Daily - Covering the full stack of network convergence from Silicon Valley

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