Hemlock Semiconductor has secured $325 million in direct funding from the US Department of Commerce
It will be provided on the achievement of targets under the CHIPS and Science Act of 2022
The company will use the funds to construct a new factory in Hemlock, Michigan
The sole US-owned manufacturer of hyper-pure polysilicon, Hemlock Semiconductor (HSC), has bagged $325 million in direct funding from the US Department of Commerce to construct its new facility as the government backs initiatives to establish vertical integration of the solar PV supply chain.
This funding has been awarded under the US government’s CHIPS Incentives Program’s Funding Opportunity for Commercial Fabrication facilities. The CHIPS and Science Act of 2022 was signed into US law to strengthen local manufacturing and supply chains of next-generation industries, including nanotechnology, clean energy, quantum computing, and artificial intelligence.
HSC is among the world’s 5 companies that produce polysilicon to the purity level needed to serve the semiconductor market, according to the Department. This funding will create close to 180 manufacturing jobs and more than 1,000 construction jobs with HSC’s new facility in Hemlock, Michigan.
“Nearly every single semiconductor made in America relies on the kind of advanced polysilicon that this investment will enable Hemlock to produce,” said National Economic Advisor Lael Brainard. “Today’s announcement not only secures this key material needed for a resilient domestic semiconductor supply chain, but it will also further bolster Michigan as a manufacturing powerhouse.”
HSC Chairman and CEO AB Ghosh said that the company’s new facility will play a crucial role in strengthening the semiconductor supply chain in the US.
Owned by Corning Incorporated and Shin-Etsu Handotai, HSC will receive the funding amount for capital expenditure for the new polysilicon factory on the completion of construction, production and commercial milestones.
This follows the Department of Commerce signing a preliminary memorandum of terms with the HSC in October 2024, coinciding with the US Department of Treasury expanding the definition of semiconductor wafer production to include solar ingot and wafer under the CHIPS and Science Act (see US Announces Tax Credits For Ingots & Wafers Under CHIPS & Science Act).
According to Bernreuter Research, HSC had a production capacity of around 20,000 metric tons (MT) in 2022 while the Chinese dominate this segment (see Chinese Grip On Global Polysilicon Supply Firm).
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