Governor Whitmer kicks off groundbreaking work on Hemlock Semiconductor’s new $375 million expansion, creating 170 new jobs

FOR IMMEDIATE RELEASE

October 21, 2022

Contact: [email protected]

Governor Whitmer kicks off groundbreaking work on Hemlock Semiconductor’s new $375 million expansion, creating 170 new jobs

Michiganders expected to see $364 million in new personal revenue from 10-year opportunity

LANSING, Mich. – Today, Governor Gretchen Whitmer joined company officials and federal, state, and local leaders to inaugurate Hemlock Semiconductor’s (HSC) new expansion project into the company’s operations in the Township of Thomas. Governor Whitmer announcement the project in September, bringing a planned investment of $375 million and creating 170 high-wage jobs in Saginaw County and strengthening Michigan’s leadership position in the semiconductor supply chain.

“Michigan is becoming a global hub for semiconductor chip manufacturing and we will continue to bring these essential 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-based company whose hyper-pure polysilicon is found in nearly every electronic device in the world, is once again betting on Michigan, expanding its presence in Thomas Township with a planned investment of up to $375 million. dollars creating 170 jobs. . Propelled by bipartisan economic development and state-backed improvements to 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 meet growing demand in the semiconductor and solar energy industries. In order for HSC to build these new investments, the Township of Thomas, in coordination with the Township of Saginaw, will significantly and rapidly increase 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 lines. In support of these needed expansions, the Township of Thomas received Michigan Strategic Fund approval for a $27 million Strategic Site Preparation Program (SSRP) performance-based grant, securing the expansion of HSC in Michigan. The SSRP grant will be funded through the Strategic Outreach and Attraction Reserve Fund (SOAR).

These projects will further strengthen Michigan’s leadership in semiconductor manufacturing and ensure a strong supply chain for potential additional growth. The projects will also create well-paying jobs in the Saginaw area with one of the oldest polysilicon manufacturers in the world.

In addition, it is expected that the influx of 170 direct jobs will result in indirect investments and redevelopment opportunities. More than $364 million in new personal income is expected to be generated from the direct, indirect and induced jobs this opportunity will create over 10 years. The project will also support small businesses in the community and help stimulate demand for redevelopment of underutilized properties in the community and state.

“Our investment simply would not be possible without the strong support of federal, state and local government leaders,” said AB Ghosh, President and CEO of HSC. “We couldn’t ask for more effective advocates who clearly understand the critical role our cutting-edge technologies will play in building a strong national semiconductor supply chain and strengthening HSC’s competitive position in worldwide.

“Michigan knows all too well what happens when we depend on semiconductor chips made halfway around the world. That’s why I led the effort with Senator Peters and Rep. Kildee to support national semiconductor chip manufacturing in the CHIPS and Science Act. This significant investment will boost Michigan manufacturing, fix our broken supply chains, reduce costs and bring thousands of jobs home,” said Senator Stabenow. “Today’s investment by Hemlock Semiconductor will maintain their global leadership in the semiconductor supply chain while creating hundreds of jobs.”

“Having toured the Hemlock facility in August, I know the projects announced today will be transformative for the local economy, the region’s critical infrastructure, and our state’s manufacturing industry,” said Senator Gary Peters. “I am proud to have worked to pass several landmark laws to invest in domestic semiconductor manufacturing that will benefit the HSC, and I am grateful to Governor Whitmer for helping to secure this investment and ensure that Michigan was chosen over the other states that were considered.

“With new laws like CHIPS and the Science Act, we’re bringing essential manufacturing back to Michigan, creating well-paying jobs and strengthening America’s economic competitiveness,” said Congressman Dan Kildee. “Hemlock Semiconductor’s new investment to expand operations in Saginaw County is a tremendous win for Central Michigan and an example of the type of investments I have passed the CHIPS and Science Act to secure. In Congress, I will continue to work to strengthen American manufacturing so we can make more stuff here in Michigan, not overseas.

“Since my earliest days in the Legislative Assembly, Hemlock Semiconductor and Thomas Township have proven time and time again that when we invest in our communities and industries, we make our region, our state and our nation’s supply chain safer. “, 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 to work to attract sustainable investment and term from semiconductor companies around the world. This transformational investment will create good jobs and economic opportunity for the people of Michigan for years to come,” said CEO of MEDC and President and Chairman of the Michigan Strategic Fund, Quentin Messer Jr. “Today represents another chapter in the close relationship between Team Michigan and HSC, and we look forward to continuing to work with this long-time Michigan company as it grows into the next generation and beyond. of the. With the unwavering support of our bipartisan legislative partners, the Whitmer-Gilchrist administration, and our many local partners, we continue to demonstrate that Michigan is a place of pure opportunity.

Hemlock Semiconductor Operations, founded in Hemlock in 1961, is one of the oldest polysilicon manufacturers in the world and remains the largest producer of high-purity polysilicon in the United States, as well as being the only manufacturer headquartered in the United States . High-purity polysilicon, as the base material used to create semiconductor chips, is essential for all products in the electronics and solar energy industries. HSC currently has approximately 1,350 employees at its headquarters in Thomas Township.

Taken together, these are transformative projects for the Township of Thomas and the surrounding region. The Township of Thomas anticipates approval of a property tax abatement valued at $20.5 million in support of the project. The Saginaw Road Commission applied for a $650,000 grant from the Michigan Department of Transportation’s Transportation Economic Development Fund, and the Township of Saginaw received a $10 million statutory appropriation to help with the project.

“We are excited for Hemlock Semiconductor to continue its growth in Saginaw County and the Great Lakes Bay area,” said JoAnn Crary, future president of Saginaw. “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 lucky to have both. »

“A development of this magnitude requires the collaboration of many partners to succeed. Hemlock Semiconductor has been an outstanding business partner since the 1960s with our community,” said Russ Taylor, Thomas Township Manager. “We are thrilled with the collaborative efforts of our community, the Township of Saginaw, Saginaw Future and MEDC to support Hemlock Semiconductor’s continued growth and look forward to completing 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 the passionate support for the CHIPS and Science Act by Governor Whitmer and the Michigan delegation.

The president then signed the CHIPS and Science Act, which authorizes a federal investment of $52 billion over the next five years to boost domestic semiconductor manufacturing and provides a 25% tax credit for new facilities. or expanded that manufacture semiconductors or related equipment. The measure includes $39 billion in grants for new manufacturing, $11 billion for federal semiconductor research and workforce development programs, and $2 billion for related microelectronics activities. at the Ministry of Defence.