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Tom’s Hardware
Tom’s Hardware
Technology
Jowi Morales

Hemlock Semiconductor gets $325 million for a new factory in Michigan — swing state-based company receives CHIPS Act award weeks ahead of the presidential election

Hemlock Semiconductor HQ.

Michigan-based Hemlock Semiconductor, which produces hyper-pure silicon for electronics and solar panels, received a $325 million CHIPS Act award from the Biden administration to build a new factory in the state. According to the Associated Press, this move would open short-term construction work and up to 180 manufacturing jobs in Saginaw County, Michigan, which was a key political battleground during the last two presidential elections.

A senior administration official said that the White House gave the award after it had completed negotiations with the company, with no regard for political considerations. Nevertheless, the timing seems a bit suspect, especially as we’re in the run-up to a highly divisive and hotly contested presidential election. Furthermore, political pundits say this move could give the Democrats an edge over the Republicans — especially as voting day is just two weeks away.

The CHIPS Act is the Biden administration’s investment policy in American semiconductor research, development, and manufacturing, where it has invested more in the industry in the past year versus the last 28 years combined. Aside from helping revitalize chip manufacturing within U.S. borders, the multi-billion-dollar spending and investment package is also aimed at keeping America ahead of China, especially as the latter is jockeying for influence and technological superiority on the global stage.

Aside from Michigan, Arizona is another swing state with significant CHIPS Act investments. Currently, it’s host to the TSMC Arizona fab that is expected to start production in the first half of 2025, as well as a $20-billion Intel fab that will manufacture its latest chips. Both companies are set to receive the lion’s share of CHIPS Act awards, with the former set to receive $6.6 billion and the latter $8.5 billion. Although Arizona voted for Biden in 2020, it traditionally votes Republican, so the Democrat campaign must focus on the state to win it again.

We only have a few more days before the presidential election, and many developments will follow its results. That’s because Harris, the Democrat nominee, backs Biden's investment policy, but Trump favors increased tariffs and corporate tax cuts to support chip manufacturing. Whatever the result of the November 5 election is, the new factory being built by Hemlock Semiconductor will directly benefit the people of Saginaw County and the state of Michigan as a whole.

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