The US Department of Commerce and Hemlock Semiconductor (HSC) signed a non-binding preliminary memorandum of terms (PMT) to provide up to $325 million in proposed direct funding under the CHIPS and Science Act to solidify US leadership in semiconductor-grade polysilicon production.

The proposed funding would support the construction of a new manufacturing facility on HSC’s existing campus in Hemlock, Michigan, dedicated to the production and purification of hyper-pure semiconductor-grade polysilicon.

Founded in 1961, HSC is the only US-based manufacturer of hyper-pure polysilicon and is one of just five companies in the world producing polysilicon to the purity level needed to serve the leading-edge semiconductor market.

Polysilicon is the foundational material for microprocessors, artificial intelligence chips, memory, and power devices. Polysilicon is the physical substance that gives chips their semiconductor properties. With this proposed CHIPS investment, HSC would increase its production capacity of hyper-pure semiconductor-grade polysilicon to serve leading-edge chip applications, in addition to the broader semiconductor ecosystem, and bolster US national, economic, and energy security. This proposed funding would be the first significant investment in HSC’s semiconductor capacity in more than two decades.

CHIPS for America has allocated more than $36 billion in proposed funding across 20 states and proposed to invest billions more in research and innovation.