The Biden administration recently announced that it will provide up to $325 million in financial support to semiconductor-grade polysilicon producer Hemlock Semiconductor (HSC) to advance the development of the semiconductor industry in United States. The move is an important part of the CHIPS and Science Act to enhance United States' competitiveness in semiconductors and create more jobs. Polysilicon is the core material for making chips, and its purity directly affects the performance of chips. HSC, one of the world's leading polysilicon producers, will be funded to build a new manufacturing facility in Michigan to further expand production capacity and meet growing market demand.
United States Secretary of Commerce Gina · Raimondo said, "Polysilicon is a key material for making semiconductors, and having a reliable source of materials is critical to chip manufacturing that supports our economy and national security." Through the CHIPS and Science Act, the Biden-Harris administration proposes to invest in upstream and downstream companies in the semiconductor supply chain, support domestic material suppliers such as HSC, promote the revival and technological leadership of semiconductor manufacturing in United States, and create quality jobs across the country. ”
Founded in 1961, HSC is the only ultra-pure polysilicon manufacturer in United States and one of only five companies in the world capable of producing high-purity polysilicon that meets the requirements of the cutting-edge semiconductor market. Polysilicon is a core material for the manufacture of microprocessors, AI chips, memory, and power devices. Through this proposed funding, HSC will increase its production capacity of ultra-pure semiconductor-grade polysilicon for cutting-edge chip applications and further strengthen United States' position in national, economic and energy security. This is the first major investment in HSC semiconductor capacity in more than 20 years.
Figure: The United States government heavily supports the semiconductor industry
"President Biden and Vice President Harris are committed to solidifying Michigan's leadership in innovation and manufacturing," said Lyle · Brainard, National Economic Advisor. Today's partnership with HSC marks the establishment of key capabilities in the semiconductor, solar and AI supply chains for United States. ”
Laurie E. Locascio, Deputy Secretary of Standards and Technology at the United States Department of Commerce, emphasized, "Polysilicon is critical to semiconductor R&D, and today's proposed investment with HSC is an important step in strengthening our domestic materials manufacturing capabilities, which will advance the semiconductor industry as a whole in the United States."
The United States government chose to support HSC for the following reasons:
Long history and rich experience: As a local semiconductor material supplier in United States, HSC has many years of production experience and technology accumulation.
Excellent product quality: HSC produces polysilicon of extremely high purity to meet the needs of cutting-edge chip manufacturing.
Focus on sustainable development: HSC actively promotes green production and is committed to reducing carbon emissions, which is in line with the current global trend of sustainable development.
HSC also highly valued the investment, with AB Ghosh, Chairman and CEO of HSC, saying, "HSC is proud to be a manufacturing powerhouse in two key industries: semiconductor and solar. With the support of the CHIPS Act, we plan to make significant investments in advanced technologies to continue to provide top-of-the-line polysilicon to the cutting-edge semiconductor market. This proposed investment demonstrates that the Biden-Harris Administration, Governor Whitmer, and our Michigan congressional supporters recognize the unique role of HSCs in meeting the needs of high-quality and sustainable manufacturing, as well as our critical role in strengthening United States interests. ”
