Department of Commerce Announces CHIPS Incentives Award with Hemlock Semiconductor to Help Secure U.S. Production Capacity of Semiconductor-Grade Polysilicon

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The Biden-Harris Administration announced that 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. HSC is the only U.S.-owned manufacturer of hyper-pure polysilicon and is one of just five companies in the world producing polysilicon to the purity level needed to serve the leading-edge semiconductor market. This award will support the construction of a new manufacturing facility in Hemlock, Michigan and is expected to create approximately 180 manufacturing jobs and over 1,000 construction jobs over time. The award follows the previously signed preliminary memorandum of terms, announced on October 21, 2024, and the completion of the Department’s due diligence. The Department will distribute the funds based on HSC’s completion of project milestones.

"CHIPS for America's investment in HSC will help advance supply chain security by ensuring the U.S. has a reliable, domestic supply of polysilicon – the bedrock of semiconductors,” said U.S. Secretary of Commerce Gina Raimondo. "Establishing a domestic source of these materials is important for development of leading-edge chip applications, which helps bolster our economic and national security. Through targeted investments like this, the Biden-Harris Administration is driving technological innovation in industries of the future and creating jobs across the country.”

“Nearly every single semiconductor made in America relies on the kind of advanced polysilicon that this investment will enable Hemlock to produce,” said National Economic Advisor Lael Brainard. “Today’s announcement not only secures this key material needed for a resilient domestic semiconductor supply chain, but it will also further bolster Michigan as a manufacturing powerhouse.”

"We are pleased to announce the signing of a direct funding agreement with the Department of Commerce under the CHIPS Act. 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. The support from the Department of Commerce and our dedicated partners at all levels of government has been instrumental in making this possible. 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."

As stated in the CHIPS Notice of Funding Opportunity for Commercial Fabrication Facilities, CHIPS for America will distribute direct funding to recipients for capital expenditures based on the completion of construction, production, and commercial milestones. The program will track the performance of each CHIPS Incentives Award via financial and programmatic reports, in accordance with the award terms and conditions.