The deal provides funding to the only US-based manufacturer of polysilicon, a foundational material that consists of multiple small silicon crystals.
Hemlock plans to use the funds to expand its Michigan campus, creating a new plant to expand the production of its polysilicon, which is used in the production of microprocessors and AI chips.
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“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 Gina Raimondo, the US Secretary of Commerce. "Establishing a domestic source of these materials is important for [the] development of leading-edge chip applications, which helps bolster our economic and national security.”
Announced back in October 2024, HSC’s CHIPS Act funding for its new production facility is expected to create approximately 180 manufacturing jobs and over 1,000 construction jobs
HSC will receive the funds from the Commerce Department subject to hitting project milestones.
“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 AB Gosh, chair and CEO of HSC. “The new facility will play a crucial role in strengthening the semiconductor supply chain in the US. We look forward to contributing to the revitalisation of the domestic supply chain, creating good-paying jobs and driving technological leadership in the semiconductor industry."
HSC’s polysilicon is a highly pure type of silicon that undergoes constant refinement, providing it with enhanced electrical properties for use in chips compared to traditional silicon.
Production of polysilicon has shifted eastwards towards China, leaving HSC as the main US-based polysilicon chip manufacturer.
The finalising of HSC’s award comes as the Commerce Department is racing to sign off on CHIPS Act subsidies as President-Elect Donald Trump has threatened to replace federal subsidies for chipmakers with tariffs.
Ahead of Trump’s inauguration on January 20, the Commerce Department has finalised subsidies for Corning and Powerex, earmarked the location of a new research facility for packaging innovation, and granted $285 million to create a research centre for virtual chip designs.
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