By David Shepardson
(Reuters) – The U.S. Commerce Division stated Monday it plans to award $325 million to Hemlock Semiconductor to considerably increase manufacturing capability of semiconductor-grade polysilicon because it seeks to shift the chips provide chain.
The federal government grant from the $52.7 billion semiconductor manufacturing and analysis subsidy program would help development of a brand new manufacturing facility on the corporate’s present website in Hemlock, Michigan.
“Polysilicon is the bedrock of semiconductors, and it’s essential we’ve a dependable supply of this materials to fabricate the chips that assist help our financial and nationwide safety,” stated Commerce Secretary Gina Raimondo.
The Biden administration has proposed billions in grants to main chips producers like Intel (NASDAQ:), TSMC, Samsung (KS:) and Micron (NASDAQ:) and desires a gentle provide of polysilicon to handle the expanded manufacturing.
Hemlock is a three way partnership owned by Corning (NYSE:) Inc and Shin-Etsu Handotai, a unit of Shin-Etsu Chemical.
Hemlock Semiconductor stated it’s “planning for a once-in-a-generation funding in superior applied sciences to proceed serving as a high polysilicon provider to the modern semiconductor market.”
In complete, the Biden administration has introduced preliminary awards totaling $36 billion of the $39 billion put aside for manufacturing subsidies however has solely finalized one. Officers count on to return to last phrases on quite a few others earlier than the tip of the 12 months.
