Hemlock Semiconductor (HSC) has been awarded $325 million in CHIPS Act funding by the US Department of Commerce.

The funding agreement follows a previously signed preliminary memorandum of terms from October 2024.

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– Thinkstock / Andrea Izzotti

HSC is the only US-owned manufacturer of hyper-pure polysilicon and is one of just five companies globally producing polysilicon to the purity level needed for advanced semiconductors.

The CHIPS Act funding will be used by HSC to support the construction of a new manufacturing facility on the company’s existing campus in Hemlock, Michigan. The site will be dedicated to the production and purification of hyper-pure semiconductor-grade polysilicon.

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, AI chips, memory, and power devices.

“This agreement is a key milestone in enhancing our manufacturing capabilities as we continue to serve the leading-edge semiconductor market with high quality and sustainably made polysilicon," said HSC chairman and CEO AB Ghosh. "The new facility will play a crucial role in strengthening the semiconductor supply chain in the United States.”

He added: “We look forward to contributing to the revitalization of the domestic supply chain, creating good-paying jobs, and driving technological leadership in the semiconductor industry."

Arizona State University Research Park chosen as location for third CHIPS Act-funded R&D facility

Also this week, the Department of Commerce and Natcast, the operator of the National Semiconductor Technology Center (NSTC), announced that Arizona State University Research Park in Tempe, Arizona would be the location of a third CHIPS for America R&D facility.

Dubbed the CHIPS for America NSTC Prototyping and National Advanced Packaging Manufacturing Program (NAPMP) Advanced Packaging Piloting Facility (PPF), the site will host the world’s first 300mm front-end semiconductor manufacturing and advanced packaging research facility and is expected to be operational in 2028.

In a statement, the department said the prototyping capabilities on offer at PPF will include at least one 300mm full-flow complementary metal-oxide-semiconductor (CMOS) technology, whilst also providing a variety of manufacturing-like environments to support R&D across novel materials and device architectures.

The other two previously announced facilities are an NSTC EUV Accelerator located at Albany NanoTech, New York, and a Design and Collaboration Facility in Sunnyvale, California.

"A strong research and development ecosystem is essential to ensuring the United States remains at the forefront of semiconductor innovation," said US secretary of commerce, Gina Raimondo. "Arizona has long been a hub for technological progress, and this new facility will strengthen our domestic supply chain, drive advanced manufacturing breakthroughs, and secure America’s leadership in this critical industry.”

With his time in office coming to an end, President Biden has approved a host of CHIPS Act funding agreements in recent weeks, with the program’s future looking uncertain under a second Donald Trump presidency.

In the run-up to the election, President-elect Trump, who takes office this month, criticized the CHIPS and Science Act, saying that the government should have levied tariffs on the semiconductor industry instead of handing out grants and loans to chip companies.