U.S. Commerce Department to Award $325 Million to Hemlock Semiconductor

By David Shepardson

The U.S. Commerce Department announced plans to award $325 million to Hemlock Semiconductor to enhance production of semiconductor-grade polysilicon, crucial for shifting the chips supply chain.

The funding, sourced from the $52.7 billion semiconductor manufacturing and research subsidy program, will support the construction of a new manufacturing facility at Hemlock's site in Hemlock, Michigan.

Commerce Secretary Gina Raimondo emphasized, "Polysilicon is the bedrock of semiconductors, and it’s important we have a reliable source of this material to manufacture the chips that help support our economic and national security."

The Biden administration has proposed billions in grants to major chip manufacturers like Intel, TSMC, Samsung, and Micron, aiming for a steady polysilicon supply to meet expanded production needs.

Hemlock is a joint venture owned by Corning Inc and Shin-Etsu Handotai, a subsidiary of Shin-Etsu Chemical. Hemlock Semiconductor stated that it is planning a transformative investment in advanced technologies to maintain its role as a leading polysilicon supplier for the semiconductor market.

To date, the Biden administration has announced preliminary awards totaling $36 billion of the $39 billion designated for manufacturing subsidies but has only finalized one. Officials anticipate finalizing numerous other agreements by year-end.