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Thursday, October 31, 2024

Hemlock Semiconductor receives $325M investment for expansion

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State Rep. Matthew Bierlein | Michigan House Republicans

State Rep. Matthew Bierlein | Michigan House Republicans

State Representative Matthew Bierlein announced that the greater Saginaw region is set to benefit from significant manufacturing investments. These investments are expected to create jobs, strengthen domestic supply chains, and reduce dependency on foreign countries, positioning Michigan as a leader in technology.

The U.S. Department of Commerce has proposed up to $325 million in direct funding for Hemlock Semiconductor to expand its manufacturing capabilities. Hemlock Semiconductor is the only U.S.-based company producing hyper-pure polysilicon, a crucial component for semiconductor chips.

Bierlein expressed his support for the investment: “I have long been an advocate of unleashing Michigan’s manufacturing capability, and it’s encouraging to see these resources come to our region where they will be used to create jobs and grow our infrastructure,” said Bierlein, of Vassar. “These are the types of investments we should be pursuing. They keep tax dollars right here at home, increase domestic production and prioritize our national security. This is a big win for our region and Saginaw County.”

Currently, the U.S. imports billions of dollars worth of semiconductor chips annually from countries such as China, South Korea, Malaysia, Thailand, Vietnam, among others, while only producing about 10 percent of the global chip supply domestically. Advanced chips are primarily developed overseas in Taiwan.

To address this imbalance, efforts have been made to bring vital supply chains and high-tech jobs back to the U.S., ultimately aiming to reduce costs. The CHIPS and Science Act was enacted federally in 2022 to encourage investment and enhance research, development, and production.

“America invented the semiconductor but outsources almost all of its production,” Bierlein said. “Our state and region helped bring the world the automobile and we’ve shown our manufacturing prowess. With critical technologies like what is developed at Hemlock Semiconductor, we can own the future in this vital sector with workers right here in Michigan and throughout Saginaw County.”

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