Michigan semiconductor plant secures $325 million in federal CHIPS funding
Hemlock Semiconductor will use the money to create a new high-tech manufacturing facility, Gov. Gretchen Whitmer’s office announced.

A mid-Michigan semiconductor plant is set to receive $325 million from the federal CHIPS and Science Act to build a new high-tech manufacturing facility, Gov. Gretchen Whitmer’s office announced on Oct. 21.
Hemlock Semiconductor, located in Saginaw County, is one of only five companies in the world, and the only company headquartered in the United States, that produces hyper-pure polysilicon. Polysilicon is a critical material needed for the manufacture of semiconductor chips, which are used in electronics in a wide range of items that includes cars, cell phones, medical devices, computers and solar panels.
“HSC is proud to be a manufacturing powerhouse for two vital industries of the future—semiconductor and solar. Bolstered by the CHIPS Act, we are planning for a once-in-a-generation investment in advanced technologies to continue serving as a top polysilicon supplier to the leading-edge semiconductor market,” Hemlock Semiconductor CEO and Chairman AB Ghosh said.
President Joe Biden signed the CHIPS and Science Act into law in 2022 to boost domestic semiconductor research and production.
In 2021, the United States accounted for only 12% of the world’s semiconductor manufacturing, down from 37% in 1990, according to the Semiconductor Industry Association. The country’s reliance on overseas manufacturing became clear with the onset of the COVID-19 pandemic, when the production of American-made vehicles stalled and the costs of electronics skyrocketed due to disruptions in the global supply chain and a shortage of chips.
In August, the White House announced the CHIPS and Science Act had spurred nearly $400 billion in semiconductor investments across the country and created more than 115,000 jobs since its enactment.
“We have to constantly be on top of what is happening, what is current, and investing in industries of the future as well as honoring the traditions and the industries that have built up America’s economy,” Vice President Kamala Harris said during a tour of the Hemlock plant on Oct. 28, PBS News reported. Harris reiterated her support for Michigan manufacturers and stressed the importance of creating jobs that don’t require a college degree. Whitmer’s office said that the newly announced investment is expected to bring 180 permanent factory jobs and over a thousand temporary construction jobs to the state.
Former President Donald Trump criticized the CHIPS Act on a recent episode of “The Joe Rogan Experience” podcast. He said that imposing tariffs on imported semiconductors would push foreign companies to build facilities in the United States. Trump said: “You didn’t have to put up 10 cents. You tariff it so high that they will come and build their chip companies for nothing.”
Economists say that Trump’s proposed tariffs on all imports into the United States would increase inflation and raise consumer prices.
The $325 million investment in Hemlock is the single-largest CHIPS investment in Michigan to date. Altogether, the state has received almost $1.5 billion in funding for semiconductor and electronics manufacturing. The state is also contributing $40 million to the new Hemlock facility.
“Together, we are strengthening national and economic security by ensuring supply chains, good-paying jobs, and cutting-edge investments are where they belong—here at home,” Whitmer said in a statement.