The federal government has unveiled a $325 million investment plan for a new semiconductor facility in Michigan.
According to an Oct. 21 U.S. Department of Commerce press statement, the new Michigan Hemlock Semiconductor (HSC) facility in Saginaw County, will also create up to 1,000 construction jobs over time and potentially generate up to 180 manufacturing jobs in an area.
The funding, drawn from the CHIPS and Science Act of 2022, is earmarked for producing hyper-pure polysilicon, a critical component in electronics and solar panels.
During an Oct. 21 phone call with reporters, U.S. Secretary of Commerce Gina Raimondo emphasized the broader impact of the CHIPS Act, stating, “What we’ve been able to do with the CHIPS Act is not just build a few new factories, but fundamentally revitalize the semiconductor ecosystem in our country with American workers.”
She said polysilicon production is crucial to manufacturing chips such as microchips, AI chips, and memory chips.
“Polysilicon is the bedrock of semiconductors, and it’s important we have a reliable source of this material to manufacture the chips that help support our economic and national security,” she said.
The initiative follows an industrial strategy championed by Vice President Kamala Harris’s campaign. In contrast, former President Donald Trump’s approach favors tariff increases and income tax reductions as means to bolster manufacturing.
The Biden-Harris administration’s focus on revitalizing American manufacturing through targeted investments and policy initiatives like the CHIPS Act represents a key pillar of the administration’s economic strategy.
According to a July White House press release, Biden and Harris have focused on creating more manufacturing jobs in the United States, creating the first-ever Made in America Office at the White House Office of Management and Budget during the administration’s first week in office.
“Since day one, President Biden and Vice President Harris have worked to make ‘Made in America’ a reality,” the White House said.
Investing in the local production of essential components like polysilicon could also strengthen America’s position in the global supply chain for semiconductors, according to Under Secretary of Commerce for Standards and Technology and National Institute of Standards and Technology Director Laurie E. Locascio.
“Polysilicon is vital to the semiconductor research and development that will drive America’s technological future and leadership,” Locascio said. “Today’s proposed investment with HSC would be a meaningful step towards strengthening our domestic materials manufacturers who can in turn bolster America’s entire semiconductor industry.”
Found in 1961, Hemlock Semiconductor is the only manufacturer of hyper-pure polysilicon in the United States and just one of five companies in the world that produces the level of purity needed in the semiconductor market, according to the Department of Commerce.
Polysilicon is the physical component that gives chips their semiconductor properties.
The Associated Press contributed to this report.