The Biden administration announced that it would allocate up to $325 million to Hemlock Semiconductor to assist in establishing a new manufacturing facility. This initiative is significant for the political landscape in Michigan, a vital swing state, as elections approach.
The financial support is expected to create approximately 180 manufacturing positions in Saginaw County, an area that has shown close competition between Democratic and Republican candidates in the last two presidential elections. In addition to the manufacturing jobs, the construction phase of the factory will also provide temporary employment opportunities. This new facility will focus on the production of hyper-pure polysilicon, which is essential for electronics and solar panel manufacturing, as well as various other technologies.
During a press briefing, Commerce Secretary Gina Raimondo highlighted that this funding is sourced from the CHIPS and Science Act, legislation signed by President Biden in 2022. This initiative aligns with a comprehensive industrial strategy endorsed by Vice President Kamala Harris, the Democratic nominee, contrasting with Republican nominee Donald Trump’s approach, which favors tariff increases and tax cuts as means to bolster manufacturing.
Raimondo emphasized the broader impact of the CHIPS Act, stating, “What we’ve been able to do with the CHIPS Act is not just build a few new factories, but fundamentally revitalize the semiconductor ecosystem in our country with American workers. All of this is because of the vision of the Biden-Harris administration.”
A senior official from the administration clarified that the timing of this funding announcement is a result of the grant negotiation process and is not influenced by political motives. This official requested anonymity in discussing the details of the conversations.
Following preliminary site preparations, Hemlock Semiconductor aims to begin construction in 2026, with production scheduled to commence in 2028, according to the official. Historically, in the 2016 election, Trump secured a narrow victory in both Saginaw County and Michigan. However, in the 2020 election, both regions shifted towards Democratic support with Biden at the helm.
