Hemlock Semiconductor’s suffered a $40 million funding loss
Hemlock Semiconductor’s new facility construction suffered a $40 million funding loss
Construction of Hemlock Semiconductor’s new facility has been impacted by a $40 million reduction in state funding following a decision by Michigan’s Republican-led House budget committee to cancel nearly $645 million in previously approved project funding across the state. Hemlock Semiconductor had secured $325 million in federal funding in October 2024 for the expansion of its Hemlock campus. The state had proposed an additional $40 million through the Make it in Michigan Competitiveness Fund (MIIMCF), but this allocation was withdrawn as part of $159 million in MIIMCF funding eliminated on December 10.
A spokesperson for Hemlock Semiconductor confirmed that the company is currently reviewing the decision regarding the state funding withdrawal.
In a statement, the company said the proposed expansion represents a key opportunity to strengthen the domestic semiconductor supply chain and reinforce Michigan’s position in the leading-edge market for high-quality, sustainably produced polysilicon—an objective it noted has broad bipartisan support. Hemlock added that it remains committed to working with state leaders to identify a path forward.
Michigan House Speaker Matt Hall indicated during a December 10 press conference that he would consider restoring funding for the Hemlock project through a supplemental spending bill next year, according to reports by the Detroit Free Press. However, Hall later told the Daily News that the competitiveness fund overall had failed to deliver value.
Hall criticised the MIIMCF, arguing that it had been misused to support projects linked to federal climate initiatives that have not produced the expected results. He cited stalled investments and job creation shortfalls as reasons for halting further spending, stating that the funding pause is intended to allow greater scrutiny and accountability. Hall has previously framed the broader funding cancellation as part of an effort to reduce the size and scope of Michigan’s state government.
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