The US government has announced a major investment of up to $325 million to establish a semiconductor-grade polysilicon manufacturing facility at Hemlock Semiconductor’s Michigan campus. This initiative, formalized through a memorandum of terms signed between the US Department of Commerce and Hemlock Semiconductor (HSC), aims to strengthen the United States' leadership in semiconductor-grade polysilicon production.

HSC stands out as the only manufacturer of hyper-pure polysilicon in the US and is one of just five companies globally capable of producing polysilicon with the purity required for semiconductor applications. The proposed funding will be distributed under the CHIPS and Science Act, which was signed into law by President Joe Biden in August 2022, signaling a strong commitment to bolstering domestic semiconductor manufacturing capabilities.

US Secretary of Commerce Gina Raimondo highlighted the crucial role of polysilicon in the semiconductor supply chain, describing it as a foundational material. “We are proposing to invest up and down the semiconductor supply chain and support domestic materials suppliers, like HSC, that are helping drive America’s semiconductor manufacturing resurgence and technological leadership, while creating quality jobs across the country,” she stated. This underscores the administration’s goal of achieving a more self-sufficient supply chain for critical technologies.

The investment will represent the first significant enhancement of HSC’s semiconductor production capacity in over two decades. In addition to supporting the construction of the new facility, the funding package includes $5 million designated for workforce development. HSC has proactively partnered with Delta College and Saginaw Career Complex to develop training programs that connect local communities to employment opportunities in the semiconductor industry, further reinforcing the local economy.

HSC Chairman and CEO AB Ghosh expressed optimism about the future, stating, “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.” This investment not only aims to enhance production capabilities but also to innovate and improve the technology used in polysilicon manufacturing.

The CHIPS and Science Act has allocated more than $36 billion in proposed funding across 20 states, with plans to invest additional billions in research and innovation. These efforts are projected to create over 125,000 jobs, highlighting the act's commitment to strengthening the US economy through technology and manufacturing. Since the beginning of the Biden-Harris Administration, semiconductor and electronics companies have announced over $400 billion in private investments, demonstrating a significant response to public funding initiatives.

In semiconductor manufacturing, specialty gases are often considered the lifeblood of the industry. These gases, crucial for creating the silicon used in chips, are integral to technological progress. Notably, a single wafer—thin slices of semiconductor material essential for integrated circuits—can contain up to a thousand chips. The manufacturing process typically involves the use of up to 30 different gases, including helium, nitrogen, and argon, which are essential for creating inert atmospheres and flushing chambers during processing.

Other specialty gases, such as hydrogen, ammonia, and chlorine, as well as rarer gases like hexafluoroethane, octafluorocyclobutane, and germane, are vital for various etching and deposition processes. This intricate interplay of gases not only facilitates the manufacturing of semiconductors but also underscores the complexity and sophistication of the industry as it evolves to meet growing technological demands. As the US seeks to solidify its position in the global semiconductor landscape, investments like those in Hemlock Semiconductor are crucial for fostering innovation and ensuring a robust supply chain.