Hemlock Semiconductor receives $325 million U.S. government funding
From pv magazine USA
The U.S. Department of Commerce awarded Hemlock Semiconductor (HSC) up to $325 million in direct funding under the CHIPS Incentives Program’s Funding Opportunity for Commercial Fabrication facilities (CHIPS and Science Act).
Hemlock Semiconductor is one of the only U.S.-based manufacturers of hyper-pure polysilicon for the semiconductor and solar industries. Earlier this month, REC Silicon, a potential leader in polysilicon manufacturing, announced it is ceasing polysilicon production at its Moses Lake, Washington facility that produced polysilicon used in solar manufacturing.
The award to HSC is intended to support the construction of a new manufacturing facility in Hemlock, Michigan that will produce polysilicon for both the semiconductor and solar industries.
HSC’s hyper-pure polysilicon is used in the production of ultra low-carbon solar panels, allowing solar developers and owners to reduce embodied carbon by up to 50%, the company said.
The new facility is expected to create approximately 180 manufacturing jobs and over 1,000 construction jobs over time.
“Hemlock is a global leader and the only American-owned company that makes hyper-pure polysilicon, which is a crucial material in everything from phones to appliances to cars,” Governor Whitmer said. “By making it here in Michigan, we are bringing the supply chain home, saving manufacturers money and creating cutting-edge opportunities for our workers.”
The bipartisan CHIPS and Science Act was signed into law in 2022. The $52 billion investment was intended to revitalize the domestic semiconductor industry and make it less dependent on foreign imports, while also bringing jobs.
The funding will be distributed for capital expenditures based on the completion of construction, production and commercial milestones. The program will track the performance of each CHIPS Incentives Award through financial and programmatic reports, in accordance with the award terms and conditions.
The award follows the previously signed preliminary memorandum of terms, announced in October 2024, and the completion of the Department’s due diligence. For more information about the award, visit the CHIPS for America website.
HSC began operations in 1961 and is owned by Corning Incorporated and Shin-Etsu Handotai.
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