The Biden administration announced on Monday that it will allocate up to $325 million to Hemlock Semiconductor for the establishment of a new factory in Saginaw County, Michigan. This move is expected to create 180 manufacturing jobs in a region that has been a battleground for Republicans and Democrats in recent presidential elections.
The funding will support the production of hyper-pure polysilicon, a crucial component used in electronics and solar panels, among other technologies. This initiative is part of the broader industrial strategy outlined in the CHIPS and Science Act, signed into law by President Joe Biden in 2022.
Commerce Secretary Gina Raimondo emphasized the significance of revitalizing the semiconductor ecosystem in the United States and creating job opportunities for American workers. The administration views this investment as a means to strengthen the country's manufacturing sector and promote economic growth.
The decision to support Hemlock Semiconductor aligns with the campaign priorities of Vice President Kamala Harris, the Democratic nominee, who advocates for strategic investments in domestic manufacturing. In contrast, former President Donald Trump has favored tariff hikes and income tax cuts to bolster the manufacturing industry.
Construction on the new factory is slated to commence in 2026, with production expected to begin in 2028. The administration clarified that the timing of the announcement was driven by the negotiation process for the grant and not influenced by political considerations.
In the 2016 presidential election, Trump narrowly carried Saginaw County and Michigan as a whole. However, in the 2020 election, both Saginaw County and Michigan shifted to support Biden and the Democratic Party.
