The Biden administration announced on Monday that it will allocate up to $325 million to Hemlock Semiconductor to significantly expand its production of semiconductor-grade polysilicon at its Michigan facility. This move, part of the CHIPS and Science Act, aims to bolster domestic chip supply chains while creating 180 new manufacturing jobs in Saginaw County, Michigan, a key political battleground state.

The funding will support the construction of a new facility at Hemlock Semiconductor’s existing site, with construction expected to start in 2026 and production slated for 2028. The plant will produce high-purity polysilicon, a critical material for semiconductors and solar panels, helping reduce U.S. dependence on foreign suppliers.

"Polysilicon is the bedrock of semiconductors, and having a reliable source is essential for our economic and national security," said Commerce Secretary Gina Raimondo, highlighting the importance of the investment. The grant is part of a broader strategy to revitalize the U.S. semiconductor ecosystem, with billions of dollars in grants proposed for major chipmakers like Intel, TSMC, Samsung, and Micron.

Hemlock Semiconductor, a joint venture between Corning Inc. and Shin-Etsu Handotai, is positioning this investment as a "once-in-a-generation" opportunity to advance its technology and solidify its role as a leading polysilicon supplier for the semiconductor industry.

This initiative aligns with the Biden administration's broader industrial strategy, which seeks to reduce foreign dependence and create jobs in key regions. As Saginaw County and Michigan have been pivotal in recent elections, the investment could carry political implications ahead of the 2024 presidential election.

In total, the Biden administration has allocated $36 billion of the $39 billion set aside for semiconductor manufacturing subsidies, with more final agreements expected by year’s end.

This announcement highlights the administration's continued efforts to rebuild critical supply chains and support the U.S. semiconductor industry.