Snapshot
Project name: Hemlock Semiconductor Expansion Project
Law: CHIPS and Science Act
Recipient: Thomas Township, Michigan
Investment amount: $375,000,000
City: Thomas Township
State: Michigan
Congressional district: 8
Construction start date: October 21, 2022
This profile is part of a project that finds and tracks the public and private sector investments generated or supported by three of the Biden administration’s economic laws. These laws make investments in the American people, helping to grow the middle class, lowering the cost of living, and setting up America to better compete and cooperate in the world. Pulling directly from several sources, this catalog provides users with publicly available information such as the number of jobs created, workforce training partnerships, and storytellers benefiting from particular projects, among other detailed information. The profile below expands on the economic, practical, and climate impacts of just one of the 35,000 investments that can be found in the Biden Administration Investment Tracker. It may be updated to account for future project developments.
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Hemlock Semiconductor’s $375 million investment in Thomas Township, Michigan, will help expand and modernize the company’s operations while bringing in 170 high-paying jobs. The investment is responding to the increase in demand for clean energy and semiconductor chips. The passage of the CHIPS and Science Act has helped to enable a groundswell of economic investment in domestic semiconductor manufacturing.
Historical context
- “Hemlock Semiconductor Operations, founded in Hemlock in 1961, is one of the longest operating manufacturers of polysilicon in the world and remains the largest producer of high-purity polysilicon in the United States, while also being the only U.S.-headquartered manufacturer. High-purity polysilicon, as the foundational material used to create semiconductor chips, is essential for all products in the electronic and solar power industries.” – Michigan Economic Development Corp., October 21, 2022
- “HSC currently has approximately 1,350 employees at its headquarters in Thomas Township.” – Michigan Economic Development Corp., October 21, 2022
- “The company is owned by Corning Inc. and Shin-Etsu Handotai. – Area Development, September 14, 2022
Project summary
- “Planned investment of $375 million and creation of 170 high-wage jobs to Saginaw County and strengthening Michigan’s leadership position in the semiconductor supply chain.” – Michigan Economic Development Corp., October 21, 2022
- “Hemlock Semiconductor, a Michigan-made company whose hyper-pure polysilicon is found in nearly all electronic devices.” – Michigan Economic Development Corp., October 21, 2022
- “HSC’s expansion is the result of planned projects the company is undertaking to serve increasing demand in the semiconductor and solar industries.” – Michigan Economic Development Corp., October 21, 2022
- “The expected timeline for the project, which includes three new buildings, is 2022 to 2025.” – MLive, October 21, 2022
Outcomes, improvements, and practical impact
- “Company officials say this expansion project will modernize the manufacturing process HSC uses to refine its semiconductor-grade polysilicon and represents a planned $375 million investment by HSC in Thomas Township.” – MLive, October 21, 2022
- “The next-generation technologies HSC will deploy through the project will increase the purity of the company’s semiconductor-grade polysilicon and improve supply to meet rising global demand.” – MLive, October 21, 2022
- “‘Polysilicon is the semiconductor in semiconductor chips,’ Phil Dembowski, HSC senior vice president and chief commercial officer, said in a statement. ‘The advanced technologies HSC will deploy through this project will drive the production of ever-smaller semiconductors, which will enable innovations in machine learning, artificial intelligence, quantum computing, self-driving vehicles, even biotech breakthroughs.’” – MLive, October 21, 2022
Economic impact
- “In addition, it is anticipated that the influx of 170 direct jobs will result in spin-off investments and redevelopment opportunities. More than $364 million in new personal income is expected to be generated by the direct, indirect, and induced jobs that this opportunity will create over 10 years. The project will also support small businesses in the community and will help spur demand to redevelop underutilized properties in the community and the state.” – Michigan Economic Development Corp., October 21, 2022
- “In support of these needed expansions, Thomas Township received Michigan Strategic Fund approval of a $27 million Strategic Site Readiness Program (SSRP) performance-based grant. The SSRP grant will be funded through the Strategic Outreach and Attraction Reserve (SOAR) Fund.” – Area Development, September 14, 2022
- “In addition to enabling HSC’s investments, the township infrastructure upgrades will create additional needed infrastructure capacity in Thomas and Saginaw Townships, resulting in expansion opportunities at the Great Lakes Tech Park, a 244-acre shovel-ready site owned by the Saginaw County Economic Development Corporation. The park was developed by Saginaw Future through Community Development Block Grant funds approved by the Michigan Strategic Fund in 2009.” – Area Development, September 14, 2022
- “Thomas Township anticipates approval of a property tax abatement valued at $20.5 million in support of the project. The Saginaw Road Commission has applied for a $650,000 Transportation Economic Development Fund grant from the Michigan Department of Transportation, and Saginaw Township has received a $10 million legislative appropriation.” – Area Development, September 14, 2022
Official supporting statements
- U.S. Sen. Debbie Stabenow (D-MI): “Michigan knows all too well what happens when we are dependent on semiconductor chips made halfway around the world. That’s why I led the effort with Senator Peters and Representative Kildee to support domestic manufacturing of semiconductor chips in the CHIPS and Science Act. This important investment will boost Michigan manufacturing, fix our broken supply chains, lower costs, and bring thousands of jobs home. … Today’s investment from Hemlock Semiconductor will continue their global leadership in the semiconductor supply chain while creating hundreds of jobs.” – Michigan Economic Development Corp., October 21, 2022
- U.S. Sen. Gary Peters (D-MI): “After visiting Hemlock’s facility in August, I know the projects announced today will be transformational for the local economy, the region’s critical infrastructure, and our state’s manufacturing industry. … I’m proud to have worked to pass several pieces of historic legislation to invest in domestic semiconductor manufacturing that will help benefit HSC, and I’m grateful to Governor Whitmer for helping to secure this investment and ensuring that Michigan was chosen over the other states that were considered.” – Michigan Economic Development Corp., October 21, 2022
- U.S. Rep. Dan Kildee (D-MI): “With new laws like the CHIPS and Science Act, we’re bringing critical manufacturing back to Michigan, creating good-paying jobs and strengthening America’s economic competitiveness. … Hemlock Semiconductor’s new investment to expand its operations in Saginaw County is a tremendous win for mid-Michigan, and an example of the kind of investments I passed the CHIPS and Science Act to secure. In Congress, I will continue working to strengthen American manufacturing so we can make more things here in Michigan, not overseas.” – Michigan Economic Development Corp., October 21, 2022
- Michigan state Sen. Ken Horn (R): “From my first days in the Legislature, Hemlock Semiconductor and Thomas Township have proven over and over again that when we invest in our communities and our industries, we make our region, our state and our nation’s supply chain more secure.” – Michigan Economic Development Corp., October 21, 2022
- Hemlock Semiconductor Chair and CEO AB Ghosh: “Our investment simply would not be possible without the strong support of federal, state and local government leaders. … We couldn’t ask for more effective advocates who clearly understand the critical role our cutting-edge technologies will play in building out a robust domestic supply chain for semiconductors and in strengthening HSC’s competitive position on a global scale.” – Michigan Economic Development Corp., October 21, 2022
Selected clips
- “Hemlock Semiconductor breaks ground on $375 million expansion project in Saginaw County” – MLive, October 21, 2022
- “State support backs semiconductor company $375 million investment bringing 170 new jobs” – Detroit News, September 7, 2022
- “Michigan awards $27 million grant to facilitate Hemlock Semiconductor expansion” – Crain’s Detroit Business, September 7, 2022