The U.S. Department of Commerce is bringing semiconductor production home by awarding direct funding to Hemlock Semiconductor (HSC). This move has vital implications for the environment, as it reduces transport emissions associated with international imports.
The CHIPS Incentives Program's Funding Opportunity for Commercial Fabrication facilities (CHIPS and Science Act) seeks to "catalyze long-term economically sustainable growth in the domestic semiconductor industry" with up to a $325 million grant.
With the recent cessation in operations from REC Silicon due to an inability to meet quality standards, the U.S. Department of Commerce injected funds into the industry to ensure the U.S. could still provide semiconductors domestically.
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Absolutely 💯 Semiconductors are used in a wide range of electronic devices like consumer electronics, the automotive industry, medical devices, and industrial and energy applications. In the latter, renewable energy, such as solar and wind, relies on semiconductors for power conversion and efficiency optimization. Power grids and smart meters use them for voltage regulation and energy management. Enabling the manufacturing of domestic semiconductors will contribute to more environmentally friendly energy production.
"Hemlock is a global leader and the only American-owned company that makes hyper-pure polysilicon, which is a crucial material in everything from phones to appliances to cars," said Michigan Governor Gretchen Whitmer in a statement to PV Magazine. "By making it here in Michigan, we are bringing the supply chain home, saving manufacturers money and creating cutting-edge opportunities for our workers."
The facility is expected to create about 180 new manufacturing jobs and over a thousand construction jobs in the years to come. This is in alignment with the bipartisan CHIPS and Science Act of the Biden Administration, which was signed into law in 2022. The project was intended to "revitalize the domestic semiconductor industry and make it less dependent on foreign imports, while also bringing jobs," as reported by PV Magazine.
A briefing on trade and climate change published by the World Trade Organization stated that "about 20-30 per cent of total carbon dioxide (CO2) emissions, which account for most GHG emissions, are associated with international trade."
Keeping production on U.S. soil is not only a shot in the arm for the workforce — it's better for the environment, too.
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