Chip firm Hemlock Semiconductor (HSC) has secured up to $325 million in proposed direct funding from the Department of Commerce under the CHIPS and Science Act.
The funding is intended to shore up the production of semiconductor-grade polysilicon in the US.
Polysilicon, short for polycrystalline silicon, is a highly pure form of silicon that is used in semiconductors and solar panels. It is the physical substance that gives chips their semiconductor properties and is therefore necessary for the production of microprocessors, artificial intelligence chips, memory, and power devices.
In a statement, the Department of Commerce said HSC would use the funding to support the construction of a new manufacturing facility on its existing campus in Hemlock, Michigan, dedicated to the production and purification of hyper-pure semiconductor-grade polysilicon.
The proposed project will create an estimated 180 manufacturing jobs and more than 1,000 construction jobs, with $5 million in funding set aside to support the development of the company’s production and construction workforce.
To facilitate this, HSC has partnered with Delta College and Saginaw Career Complex to create semiconductor training programs and support employment opportunities. The company has also committed to working with the local community to expand affordable childcare offerings for its employees.
“HSC is proud to be a manufacturing powerhouse for two vital industries of the future – semiconductor and solar. Bolstered by the CHIPS Act, we are planning for a once-in-a-generation investment in advanced technologies to continue serving as a top polysilicon supplier to the leading-edge semiconductor market,” said HSC chairman and CEO, AB Ghosh.
“Our customers want high quality and sustainably made polysilicon. This proposed investment demonstrates that the Biden-Harris Administration, Governor Whitmer, and our Michigan congressional champions understand HSC’s unique ability to meet those demands and our crucial role in strengthening American interests. As the United States works to reshore critical supply chains, we hope to make additional investments.”
The $280bn CHIPS and Science Act, was approved by Congress in July 2022, with $52bn of the overall funding package designated as subsidies for US semiconductor manufacturers. Funding from the act has also been earmarked for semiconductor R&D, growing a skilled semiconductor workforce, and incentives for manufacturing chips and specialized tooling equipment.
The proposed funding for HSC marks the third CHIPS and Science Act funding allocation made by the Department of Commerce this week. On October 15, silicon carbide chip company Wolfspeed signed a provisional agreement with the department to receive up to $750 million in direct funding to support the construction of two new facilities in North Carolina and New York.
Two days later, the department announced it had provisionally agreed to provide up to $93 million in direct funding to optical networking vendor Infinera to support the construction of a new fab in San Jose, California, and a new advanced test and packaging facility in Bethlehem, Pennsylvania.
