Michigan Infrastructure Project Supports Semiconductor Growth

The Thomas Township infrastructure project will enable Hemlock Semiconductor Operations (HSC) to invest up to $375 million and create 170 jobs.  

Earlier this week, Governor Gretchen Whitmer joined the Michigan Economic Development Corporation (MEDC) to support a Thomas Township infrastructure project that will enable a total capital investment of up to $375 million and the creation of 170 jobs. The infrastructure project will allow Hemlock Semiconductor Operations (HSC) to modernize and expand its operations in Michigan and meet increasing global demand for hyper-pure polysilicon in the semiconductor and solar industries.

“Hemlock Semiconductor’s investments in Michigan will create more good jobs in the Saginaw region and empower us to continue building and leading semiconductor production in our state,” said Gov. Whitmer. “Thanks to HSC’s continued investment in our state – which spans decades – Michigan will stay at the forefront of high-tech polysilicon production for the critical semiconductor and solar industries. The impact of this investment will be felt around the entire state for decades to come and build on our economic momentum as work to lead the future of this transformational industry right here in Michigan.”

HSC Michigan polysilicon
In February, Governor Gretchen Whitmer joined business, state and local officials for a tour of Hemlock Semiconductor’s facilities in Hemlock, MI. (Photo: Michigan.gov)

HSC is one of the longest operating manufacturers of polysilicon in the world and remains the largest producer of high-purity polysilicon in the U.S., while also being the only U.S.-based 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 Thomas Township headquarters.

In order for HSC to construct new projects it’s considering to serve increasing demand in the semiconductor and solar industries, Thomas Township and Saginaw Township must 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 instead of other states that were considered. The SSRP grant will be funded through the Strategic Outreach and Attraction Reserve (SOAR) Fund.

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The HSC projects will boost Michigan’s leadership in semiconductor manufacturing and will ensure a strong supply chain for potential additional growth.

“We built our global reputation on the ability to stay at the forefront of high-tech polysilicon production for the critical semiconductor and solar industries,” said HSC Chairman and CEO AB Ghosh. “This investment in local infrastructure supports HSC’s ability to improve and expand our operations and helps us remain globally competitive. Today’s announcement proves Michigan is serious about prioritizing the growth of high-tech businesses. We thank Governor Whitmer and the Michigan Economic Development Corporation for ensuring the U.S. leads in crucial, silicon-enabled technologies.”

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