Michigan Celebrates CHIPS Act One-Year Anniversary with Continued Semiconductor Leadership

One year ago, President Joe Biden signed the bipartisan CHIPS and Science Act into law. Today, Michigan is a semiconductor leader, winning key projects and developing workforce programs to onshore chip production.

 

The bipartisan CHIPS and Science Act signed into law by President Joe Biden one year ago is making unprecedented investments in domestic manufacturing, specifically in the semiconductor and clean energy sectors. As a global epicenter of advanced manufacturing and home to one-fifth of chip-hungry American automotive production, Michigan is poised to win investments to support the growth of the domestic semiconductor technology and create good-paying, high-quality jobs for Michiganders.

“Michigan’s legendary manufacturing heritage and bold investments in workforce and economic development have us in a strong position to build the future of cars, chips, and clean energy,” said Governor Whitmer. “One year after the CHIPS and Science Act, we are continuing to demonstrate our leadership with more battery plants, semiconductor facilities, and innovative workforce programs. Our know-how and deep industry roots put us in a strong position to be a global leader in so many emerging industries, backed by the powerful incentives in the bipartisan CHIPS and Science Act. Together, we will continue getting things done to help anyone ‘make it’ in Michigan.”

“As we celebrate the one-year anniversary of the CHIPS and Science Act, MEDC has worked with Governor Whitmer, the Michigan Legislature and our federal delegation to use these invaluable federal policies to strengthen our state’s semiconductor industry,” said Michigan Economic Development Corporation (MEDC) CEO Quentin L. Messer, Jr. “We are proud of what we have accomplished in the past year and the ‘Make it in Michigan’ economic development framework will accelerate the growth of our semiconductor manufacturing ecosystem. Work remains, but we are committed to getting it done and capitalizing on the Act’s provisions.”

Michigan’s Semiconductor Wins

In the year since the signing of the CHIPS Act, Michigan has continued to grow its semiconductor industry winning projects and developing programs to develop talent and onshore chip production.

In an effort to make Michigan a top state for semiconductor talent solutions and growth, the MEDC launched the new Semiconductor Talent Action Team in November 2022. The Talent Action Team will work across the public sector, industry partners and training institutions to identify a clear set of semiconductor-specific curricula and R&D investments, placing Michigan in a strong position to attract long-term, sustainable investments from semiconductor companies around the world.

“Michigan is leading the way for helping to develop and train the next generation of semiconductor talent by identifying the key skills and competencies most needed by employers to drive future microchip industry development,” said MEDC Executive Vice President and Chief Talent Solutions & Engagement Officer Kerry Ebersole Singh. “Through initiatives like the Semiconductor Talent Action Team, we will build on Michigan’s leadership in STEM talent and research, positioning our state as a leader in the future of the global semiconductor industry.”

The Semiconductor Talent and Automotive Research (STAR) initiative will focus on developing the talent base and infrastructure necessary to accelerate advanced semiconductor applications for electrification and autonomous mobility and move the automotive industry forward. The partnership between semiconductor company KLA, Belgium-based technology innovation hub imec, the University of Michigan, Washtenaw Community College and General Motors that establishes a global center of excellence in Michigan to formalize support for the development of the semiconductor industry workforce as well as the advancement of autonomous automotive solutions and electric vehicle research.

Leading semiconductor companies are also building a strong presence, and robust semiconductor ecosystem in the state, including:

• Global advanced materials manufacturer Mersen will increase its semiconductor material production in the state with expansions in Bay City and Greenville. The project is expected to create 115 jobs in semiconductor and silicon chip materials manufacturing.
• California-based indie Semiconductor announced an expansion to include a best-in-class semiconductor design and testing facility in Auburn Hills, creating up to 180 high-wage jobs.

 

Michigan’s demonstrated leadership in advanced manufacturing within the semiconductor field is also evident in companies such as Hemlock Semiconductor Operations, the largest producer of polysilicon in the U.S. Hemlock was chosen as the site of Governor Whitmer’s CHIPS Act executive directive signing thanks to its key role in Michigan’s growing semiconductor industry.

Hemlock also announced plans to invest $375 million and create 170 jobs at its facilities in Thomas Township in September 2022, further ensuring the company’s long-term commitment to continue to produce the essential polysilicon for the semiconductor and solar industries in Michigan.

 

Looking Ahead

As part of the Make it in Michigan budget, Governor Whitmer and the Michigan Legislature allocated $350 million to launch the Make it in Michigan Competitiveness Fund. After passage of the CHIPS and Science Act and Inflation Reduction Act, there are billions in federal resources on the table to power domestic manufacturing, specifically in the semiconductor and clean energy sectors.

The Make it in Michigan Competitiveness Fund will help bring home more than Michigan’s fair share of federal resources from the CHIPS and Science Act and the Inflation Reduction Act so Michigan can grow its economy and bring more projects home. Governor Whitmer and the Legislature will partner on and make public several more initiatives to win projects and bring manufacturing and supply chains home. This includes spurring more research and development in Michigan, lowering costs for businesses so they can hire more Michiganders and landing transformational projects in communities while making linked, parallel investments in local childcare, housing, infrastructure and workforce programs.

With a rich history in manufacturing and innovation, Michigan is poised to be a guiding hand as the world’s need for semiconductor technology continues to evolve in the 21st Century.

Learn more about Michigan’s growing semiconductor industry at michiganbusiness.org/industries/semiconductor/.

About Michigan Economic Development Corporation (MEDC)

The Michigan Economic Development Corporation is the state’s marketing arm and lead advocate for business development, job awareness and community development with the focus on growing Michigan’s economy. For more information on the MEDC and our initiatives, visit www.MichiganBusiness.org. For Pure Michigan® tourism information, your trip begins at www.michigan.org. Join the conversation on: Facebook Instagram LinkedIn, and Twitter.