US set to award Hemlock Semiconductor $325 million for polysilicon production

Shin-Etsu Chemical

21/10/2024 17:00

By David Shepardson
       Oct 21 (Reuters) - The U.S. Commerce Department said
Monday it plans to award $325 million to Hemlock Semiconductor
to significantly expand production capacity of
semiconductor-grade polysilicon as it seeks to shift the chips
supply chain.
    The government grant from the $52.7 billion semiconductor
manufacturing and research subsidy program would support
construction of a new manufacturing facility on the company's
existing site in Hemlock, Michigan.
    "Polysilicon is the bedrock of semiconductors, and it’s
important we have a reliable source of this material to
manufacture the chips that help support our economic and
national security,” said Commerce Secretary Gina Raimondo.
    The Biden administration has proposed billions in grants to
major chips manufacturers like Intel  INTC.O , TSMC  2330.TW ,
Samsung  005930.KS  and Micron  MU.O  and wants a steady supply
of polysilicon to address the expanded production.
    Hemlock is a joint venture owned by Corning Inc  GLW.N  and
Shin-Etsu Handotai, a unit of Shin-Etsu Chemical  4063.T .
    Hemlock Semiconductor said it is "planning for a
once-in-a-generation investment in advanced technologies to
continue serving as a top polysilicon supplier to the
leading-edge semiconductor market."
   In total, the Biden administration has announced preliminary
awards totaling $36 billion of the $39 billion set aside for
manufacturing subsidies but has only finalized one. Officials
expect to come to final terms on numerous others before the end
of the year.
    
    

 (Reporting by David Shepardson; Editing by Chizu Nomiyama)
 ((David.Shepardson@thomsonreuters.com; 2028988324;))