Biden-Harris Administration makes $325 Million Investment to Expand Semiconductor Industry in Michigan, Creating Over 1,000 Manufacturing and Construction Jobs

Michigan company Hemlock Semiconductor (HSC) secures first significant and largest proposed investment in the state from Biden-Harris administration’s bipartisan CHIPS and Science Act to create jobs, grow Saginaw’s regional economy

 

LANSING, Mich. – Today, Governor Gretchen Whitmer announced that the Biden-Harris administration provided proposed direct funding of $325 million to Michigan-based manufacturer Hemlock Semiconductor (HSC) to build a new facility supporting 180 permanent, advanced manufacturing jobs and over a thousand good-paying construction jobs. The proposed direct funding was made under the Biden-Harris administration’s bipartisan CHIPS and Science Act, which is focused on bringing vital supply chains and good-paying, cutting-edge jobs home to America.  

“Today, cutting-edge Michigan company Hemlock Semiconductor secured a proposed $325 million investment from the Biden-Harris administration to create 180 good-paying jobs and build a new facility to help make polysilicon, a critical material that’s found in nearly every electronic device in the world,” said Governor Gretchen Whitmer. “HSC is one of many Michigan-based companies that is helping us lead the future of advanced manufacturing. Thanks to the Biden-Harris administration’s bipartisan CHIPS and Science Act and the U.S. Department of Commerce, we are ensuring HSC’s global leadership in the powerful domestic supply chain to manufacture semiconductor chips needed for everything from computers and phones to AI applications. Together, we are strengthening national and economic security by ensuring supply chains, good-paying jobs, and cutting-edge investments are where they belong—here at home. Let’s build the future we all want—one where America leads.” 

“Governor Whitmer and I are committed to bringing supply chains home and creating good-paying jobs right here in Michigan,” said Lieutenant Governor Garlin Gilchrist II. “Thanks to the Biden-Harris administration and the Department of Commerce, this proposed $325 million grant to Michigan-based company HSC will do just that. This historic investment ensures Michigan’s place at the forefront of innovation and competitiveness in the semiconductor industry, fortifying our national and economic security. Thanks to the leadership of President Biden and Vice President Harris, HSC is investing here in Michigan to advance a low-carbon, digital world. Together, we’ll keep leading the world into a brighter future.” 

“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,” said U.S. Secretary of Commerce Gina Raimondo. “Because of the Biden-Harris Administration’s CHIPS and Science Act, we are proposing to invest up and down the semiconductor supply chain and support domestic materials suppliers, like HSC, that are helping drive America’s semiconductor manufacturing resurgence and technological leadership – and creating quality jobs all over the country in the process.”   

“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.”          

“In Michigan, our workers know how to make things well and with precision. That’s why I’m thrilled to announce this major investment that is going to keep Michigan at the forefront of advanced manufacturing, nationally and globally, and create thousands of good-paying jobs in our state,” said U.S. Senator Gary Peters. “As one of just five companies worldwide and the only company headquartered in the U.S. that produces hyper-pure polysilicon for semiconductors, Hemlock Semiconductor plays a critical role in both our economy and national security. I’m proud to have authored the provision in the CHIPS and Science Act that ensured HSC would be eligible for this grant and have since continued to advocate for HSC as they work to ramp up production here at home. This funding will be a catalyst to that effort.” 

“Michigan knows all too well what happens when we are dependent on semiconductor chips made halfway around the world. That’s why, as part of the CHIPS and Science Act, I led the effort with Senator Peters and Representative Kildee to make sure semiconductor chips are manufactured here in the United States and there is no better place to make them than Michigan. This important federal investment will boost Michigan manufacturing, fix our broken supply chains, lower costs, and bring jobs home,” said U.S. Senator Debbie Stabenow. “I applaud HSC’s leadership in semiconductor manufacturing and improving our supply chains.” 

“Because of the work of President Biden, Vice President Harris and Democrats in Congress, we are securing our supply chains and bringing manufacturing back to Michigan,” said U.S. Congressman Dan Kildee. “I fought hard to bring this federal investment to mid-Michigan to create hundreds of good-paying local jobs and ensure that we make things in Michigan, not overseas. HSC is a key part of America’s resurgence in semiconductor and polysilicon manufacturing that will help our economy grow and compete for years to come.” 

"There's no better place to make the future of America's economy than right here in mid-Michigan," said state Senator Kristen McDonald Rivet. "These dollars allow Hemlock Semiconductor, our region, and nation to solidify global leadership in making polysilicon and semiconductors. By increasing home-grown production of a vital part of countless supply chains, we’re simultaneously strengthening national security and domestic advanced manufacturing. The return on this investment, and all the high-paying jobs it will generate, will have a positive impact on mid-Michigan families now and for generations to come.”   

“I am thrilled with this federal investment into our community,” said state Senator Kevin Daley. “HSC is a great company that does vital work to ensure that Michigan remains a stronghold of manufacturing and economic development. This project will greatly benefit both the people of my district and the state as a whole.” 

“This investment in HSC and in the Hemlock community is going to impact so many in a positive manner,” said state Representative Graham Filler. “Onshoring production to America is a game changer.” 

 

New HSC Production Facility  

Hemlock Semiconductor is one of the largest producers of hyper-pure polysilicon, a critical material for electronics and solar panels, and is the only one headquartered in America. In a growing global economy, HSC has established Michigan as a leader at the forefront of innovation and technology, with nearly every electronic device in the world containing HSC polysilicon. The proposed production facility will increase HSC’s manufacturing capacity to support the semiconductor supply chain right here in Michigan.   

 

Largest CHIPS Investment in Michigan 

The Biden-Harris administration’s CHIPS and Science Act of 2022 has worked to revitalize domestic manufacturing, create good-paying American jobs, strengthen American supply chains, and accelerate the industries of the future. In just over two years, the CHIPS Act has directly led to more than $30 billion of advanced manufacturing projects in the United States, spanning 15 states. In Michigan alone, with today’s announcement, our state has received nearly $1.5 billion of investments in semiconductor and electronics manufacturing. These policies have also spurred a historic recovery in manufacturing, adding 642,000 manufacturing jobs across the U.S. since 2021. 

The proposed funding represents the largest CHIPS investment in Michigan to date, and the Whitmer-Gilchrist administration is committed to keep bringing supply chains home to combat the negative consequences of offshoring chip manufacturing.  

While America invented the semiconductor, we now make up only 12% of the world’s supply of chips. In 2021, Americans saw the effects of offshoring firsthand with parking lots full of nearly finished Michigan-made cars and trucks, awaiting semiconductor chips from Asia. This national chip shortage also increased the costs of electronics and appliances, resulting in delays for families and small businesses across the states.  

By awarding $325 million to homegrown companies like Hemlock Semiconductor, the Biden-Harris administration is reducing America’s reliance on overseas manufacturing, ensuring supply chains start and end where they belong—right here at home. By building on a growing trend of more jobs and investments in Michigan, domestic manufacturers will be able to get chips for their products and families can go to the store or dealership to get what they need without delay.  

 

Ongoing Hemlock Semiconductor Partnership with State of Michigan  

Announced in February 2024, the Make it in Michigan Competitiveness Fund was developed to help companies leverage unprecedented federal opportunities made available through the Biden-Harris administration's CHIPS Act, Inflation Reduction Act and Bipartisan Infrastructure Law. Governor Whitmer and the Michigan Infrastructure Office challenged companies applying to support workers with fair pay, good benefits, and skill development.  

In addition to up to $325 million from the Biden-Harris administration’s CHIPS Act, the state of Michigan is supporting the proposed project with $40 million from the Make It in Michigan Competitiveness Fund to Hemlock Semiconductor and additional partnership from the Michigan Economic Development Corporation (MEDC).  

The state of Michigan has a longstanding partnership supporting HSC’s growth, including its September 2022 investment in Thomas Township. HSC has also collaborated with the Michigan Department of Environment, Great Lakes, and Energy (EGLE) and Governor Gretchen Whitmer’s Council on Climate Solutions, supporting a brighter and lower-carbon future in Michigan.  

Including the investments announced today, the Competitiveness Fund has invested $185.9 million, leveraging $961 million in federal funds, a return on investment of more than 5:1.  

“Today’s announcement of a $325 million investment showcases Michigan’s growing role as a leader in advanced manufacturing and innovation. Thanks to the CHIPS and Science Act, Michigan will be home to 180 new good-paying jobs, enhancing our state’s ability to produce critical semiconductor chips right here at home,” said Zachary Kolodin, Michigan’s Chief Infrastructure Office and Director of the Michigan Infrastructure Office. “This investment, paired with a $40 million match from the Make It In Michigan Competitiveness Fund, attracts top talent, supports sustainable economic growth, and ensures the technologies we rely on every day are built in America. The Battery and Advanced Manufacturing Challenge has leveraged $125 million in state dollars to pull down $630 million in federal funding. Michigan is proud to be a leader in bringing home federal investments that are making a real, positive impact in our communities.” 

For more information about the Make It in Michigan Competitiveness Fund and how to apply for funding or technical assistance, please visit www.michigan.gov/whitmer/issues/michigan-infrastructure-office. 

 

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.