Today, Governor Gretchen Whitmer joined company officials and federal, state, and local leaders to break ground on Hemlock Semiconductor’s (HSC) new expansion project at the company’s Thomas Township operations. Governor Whitmer announced the project in September, bringing a 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 is becoming a global hub of semiconductor chip manufacturing and we will continue bringing these critical supply chains home so we can create jobs, bring billions in investment to our communities, and lead the future,” said Governor Whitmer. “Hemlock Semiconductor, a Michigan-made company whose hyper-pure polysilicon is found in nearly all electronic devices in the world, is betting on Michigan once again, expanding their presence in Thomas Township with a planned investment of up to $375 million creating 170 jobs. Powered by bipartisan economic development and state-supported improvements of critical public infrastructure, Hemlock’s planned investment will foster economic opportunity for Michiganders for generations to come.”
Announced in September, HSC’s expansion is the result of planned projects the company is undertaking to serve increasing demand in the semiconductor and solar industries. In order for HSC to construct these new investments, Thomas Township, in coordination with Saginaw Township, will significantly and rapidly expand sanitary sewer capacity in support of the HSC site. The expansions will include the construction of two new lift stations and five miles of sewer mains. 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, ensuring HSC’s expansion in Michigan. The SSRP grant will be funded through the Strategic Outreach and Attraction Reserve (SOAR) Fund.
These projects will further boost Michigan’s leadership in semiconductor manufacturing and will ensure a strong supply chain for potential additional growth. The projects will also bring high-wage jobs to the Saginaw region with one of the longest operating manufacturers of polysilicon in the world.
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.
“Our investment simply would not be possible without the strong support of federal, state and local government leaders,” said HSC chairman and CEO AB Ghosh. “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 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,” said Senator Stabenow. “Today’s investment from Hemlock Semiconductor will continue their global leadership in the semiconductor supply chain while creating hundreds of jobs.”
“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,” said Senator Gary Peters. “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.”
“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,” said Congressman Dan Kildee. “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.”
“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,” said Senator Ken Horn (R-Frankenmuth).
“HSC’s investment underscores the strength of the workforce within our state’s high-tech manufacturing workforce and secures a critical win as we continue working to attract long-term, sustainable investments from semiconductor companies around the world. This transformational investment will create good jobs and economic opportunity for Michiganders for years to come,” said MEDC CEO and Michigan Strategic Fund President and Chair Quentin Messer Jr. “Today represents another chapter in Team Michigan’s strong relationship with HSC, and we look forward to continuing to work with this longstanding Michigan company as it grows into the next generation and beyond. Through the steadfast support of our bipartisan legislative partners, the Whitmer-Gilchrist Administration and our many local partners, we are continuing to demonstrate that Michigan is a place for pure opportunity.”
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. HSC currently has approximately 1,350 employees at its headquarters in Thomas Township.
Taken together, these are transformational projects for Thomas Township and the surrounding region. 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 to help with the project.
“We are delighted that Hemlock Semiconductor will continue its growth in Saginaw County and the Great Lakes Bay Region,” said Saginaw Future President JoAnn Crary. “The decision to expand here underscores the importance of local government collaboration and the availability of a rich pool of highly skilled talent. We are fortunate to have both.”
“A development of this magnitude takes many partners working together for success. Hemlock Semiconductor has been an outstanding corporate partner since the 1960’s with our community,” said Russ Taylor, Thomas Township Manager. “We are so pleased with the collaborative efforts of our community, Saginaw Township, Saginaw Future and the MEDC to support Hemlock Semiconductor’s continued growth and we look forward to taking this through our local process.”
Today’s announcement comes just a month after President Joe Biden joined Governor Whitmer for a virtual signing event for the state’s CHIPS Act executive directive, hosted at HSC’s operations. President Biden chose to attend this event in recognition of Michigan’s role in semiconductor manufacturing and passionate support for the CHIPS and Science Act by Governor Whitmer and Michigan’s delegation.
The President later signed the CHIPS and Science Act, which authorizes a $52 billion federal investment over the next five years in boosting domestic semiconductor manufacturing and provides a 25 percent tax credit for new or expanded facilities that make semiconductors or related equipment. The measure includes $39 billion in grants for new manufacturing, $11 billion for federal semiconductor research programs and workforce development, and $2 billion for Defense Department-related microelectronics activities.