By David Shepardson
(Reuters) – The U.S. Commerce Division mentioned Monday it plans to award $325 million to Hemlock Semiconductor to considerably broaden 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 building of a brand new manufacturing facility on the corporate’s current web site in Hemlock, Michigan.
“Polysilicon is the bedrock of semiconductors, and it’s vital we have now a dependable supply of this materials to fabricate the chips that assist help our financial and nationwide safety,” mentioned Commerce Secretary Gina Raimondo.
The Biden administration has proposed billions in grants to main chips producers like Intel, TSMC, Samsung and Micron and desires a gradual provide of polysilicon to deal with the expanded manufacturing.
Hemlock is a three way partnership owned by Corning Inc and Shin-Etsu Handotai, a unit of Shin-Etsu Chemical.
Hemlock Semiconductor mentioned it’s “planning for a once-in-a-generation funding in superior applied sciences to proceed serving as a prime polysilicon provider to the modern semiconductor market.”
In whole, 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 closing phrases on quite a few others earlier than the top of the yr.
(Reporting by David Shepardson; Modifying by Chizu Nomiyama)
