$325M to Fix Chip Shortage – Michigan Scores Big in Semiconductor Boom ?

Michigan’s semiconductor industry receives a major boost as Hemlock Semiconductor secures $325 million, promising over 1,000 new jobs and critical supply chain improvements.

Hemlock Semiconductor Secures Largest CHIPS Act Grant in Michigan

LANSING — Governor Gretchen Whitmer announced a $325 million investment from the Biden-Harris administration to support Hemlock Semiconductor (HSC) in building a new production facility, creating 180 permanent advanced manufacturing jobs and over 1,000 construction jobs in Michigan. The investment, funded through the CHIPS and Science Act, marks the largest federal grant in Michigan’s semiconductor sector to date and is part of a broader effort to rebuild domestic supply chains and secure America’s leadership in advanced manufacturing.

“Today’s investment will cement Michigan’s role as a global leader in advanced manufacturing,” Whitmer said. “Thanks to the CHIPS and Science Act, HSC will continue producing polysilicon, a vital material in electronics, while creating good-paying jobs and fortifying our economy.”

New Facility to Strengthen U.S. Semiconductor Supply Chain

Hemlock Semiconductor is one of only five companies globally and the only U.S.-based producer of hyper-pure polysilicon, essential for semiconductor chips used in everything from phones and computers to artificial intelligence. The new facility will enhance domestic semiconductor manufacturing at a time when disruptions to overseas supply chains have underscored the importance of onshoring production.

“This historic investment ensures Michigan’s place at the forefront of the semiconductor industry,” said Lt. Governor Garlin Gilchrist II. “We are building a more resilient economy and stronger supply chains, right here in Michigan.”

The national semiconductor shortage has been a pressing issue since 2021, when the lack of chips caused production delays for Michigan automakers and drove up costs for electronics nationwide. This grant aims to mitigate such risks by establishing a robust local supply chain.

Key Partnerships and Economic Impact

The Make It In Michigan Competitiveness Fund, launched in early 2024, is contributing $40 million to HSC’s expansion as part of the project. HSC will also benefit from partnerships with the Michigan Economic Development Corporation (MEDC) and environmental agencies to align the expansion with sustainable practices.

“By investing in domestic production, we’re not just creating jobs—we’re ensuring America’s economic and national security,” said U.S. Secretary of Commerce Gina Raimondo.

The new facility will add to HSC’s existing investments, including a previous expansion in Thomas Township. Senator Debbie Stabenow emphasized the importance of the investment: “Michigan has seen firsthand what happens when we rely too heavily on foreign-made semiconductors. This investment will help fix our supply chains, bring costs down, and secure good-paying jobs.”

Michigan’s Growing Role in Advanced Manufacturing

The announcement comes as Michigan solidifies its leadership in semiconductor production. With the CHIPS and Science Act facilitating over $1.5 billion in manufacturing investments in the state, Michigan is poised to lead the way in advanced technology development.

“In Michigan, we know how to build the future,” said U.S. Senator Gary Peters. “This funding for HSC demonstrates that we are prepared to meet the challenges of tomorrow with innovation and precision.”

Your Turn – Like This, or Hate it – We Want To Hear From You

Please offer an insightful and thoughtful comment. Idiotic, profane, or threatening comments are eliminated without remorse. Consider sharing this story. Follow us to have other feature stories fill up your Newsbreak feed from ThumbWind Publications.