Granholm Announces up to $1 Billion Hemlock Semiconductor Expansion in Saginaw County

Monday, December 15, 2008

Michigan wins company's fourth expansion in four years

LANSING - Governor Jennifer M. Granholm and Michigan Economic Development Corporation (MEDC) President and CEO James C. Epolito today announced that Dow Corning joint venture Hemlock Semiconductor Corporation (HSC) will invest up to $1 billion to expand its manufacturing facility in Hemlock. The expansion is expected to create 576 new jobs, including 190 directly by the company. HSC is the world’s leading producer of polycrystalline silicon, a component of photovoltaic cells used to produce solar energy and various electronic devices for the semiconductor industry. 

In addition, Dow Corning announced today it will begin manufacturing high purity monosilane, a key specialty gas used to manufacture thin-film solar cells and liquid crystal displays (LCDs). This investment includes construction of a new monosilane manufacturing facility adjacent to HSC's polysilicon manufacturing site. 

“Our efforts to diversify Michigan’s economy and create jobs are enhanced by HSC’s billion dollar investment, which will help us position Michigan as the alternative energy center of North America,” Granholm said. “Expanding solar manufacturing in Michigan is part of our aggressive strategy to grow high-tech companies and jobs and in the process help reduce our nation’s dependence on foreign oil.”  

Granholm celebrated today’s announcements at Saginaw Valley State University with company officials, employees, and state and community leaders.

“Governor Granholm, as well as many key state legislators and local government officials worked hard to make Michigan an attractive location for another Hemlock Semiconductor expansion,” Hemlock Semiconductor President and CEO Rick Doornbos said. “Hemlock, Michigan, has been our home since our inception more than 40 years ago. It reflects the commitment of our talented employees and the support of the region that we’re able to make another large investment at the site.”

Based on the MEDC’s recommendation, the Michigan Economic Growth Authority (MEGA) today approved a state tax credit valued at $8.4 million over 20 years to win the company’sinvestment. The HSC project is the first to be designated for Anchor New Jobs and Anchor District incentives created by legislation signed into law by Governor Granholm in April. Under the designations, a company that attracts or influences a supplier or customer to locate or expand in Michigan (Anchor New Jobs) and a company that encourages a customer or supplier to locate within a 10-mile radius (Anchor District) can qualify for tax credits.

Additional state and local support will include job-training assistance, funding for infrastructure improvements, a 12-year refundable energy credit, and tax abatements from Thomas Township.

“Economic development is a team sport, and today’s great news would not have been possible without the excellent teamwork exhibited by company, state and local officials,” Epolito said. “I applaud the efforts of Thomas Township, Saginaw Future, our partners in the Legislature and various state agencies for working hard to help make the strong business case for the company’s continued prosperity in Michigan.”

An economic analysis conducted by the MEDC estimates that increased economic activity created by the HSC expansion will generate an additional 386 indirect Michigan jobs, in addition to the 190 created directly by the company. The project is expected to generate more than $892 in personal income for Michigan workers over the life of the tax credit.

The HSC expansion is one of 20 economic development projects the governor announced today. In all, they are expected to create and retain a total of 7,446 Michigan jobs.

“These announcements could not have come at a better time,” Saginaw Future Inc. President JoAnn Crary said. “This investment further establishes the region as Michigan’s ‘solar valley’ and positions the area for continued growth in renewable energy.”

Hemlock Semiconductor is a joint venture of Dow Corning Corporation and two Japan-based firms, Shin-Etsu Handotai Co., Ltd. and Mitsubishi Materials Corporation. In solar applications, polycrystalline silicon is the cornerstone material used to produce solar cells that harvest renewable energy from light rays. In addition to serving the solar energy market, polysilicon is also used in the production of semiconductor devices used in computers, cell phones and other electronic applications.

Hemlock Semiconductor Corporation ( is the world's leading provider of polycrystalline silicon and other silicon-based products used in the manufacturing of semiconductor devices and passive solar cells and modules. Headquartered in Hemlock, Michigan, Hemlock Semiconductor is owned in majority and managed by Dow Corning Corporation.

Dow Corning Corporation ( provides performance-enhancing solutions to serve the diverse needs of more than 25,000 customers worldwide. A global leader in silicon-based technology and innovation, offering more than 7,000 products and services, Dow Corningis equally owned by The Dow Chemical Company and Corning, Incorporated. More than half of Dow Corning’s annual sales are outside the United States.

In her 2008 State of the State address, Granholm emphasized the importance of creating opportunity in the changing world of the 21st century. Since January 2005, the governor and the MEDC have announced the creation or retention of more than 298,000 jobs as a result of targeted assistance provided by the MEDC.


Hemlock Semiconductor Corporation

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About Michigan Economic Development Corporation (MEDC)

The Michigan Economic Development Corporation is the state’s marketing arm and lead advocate for business development, job awareness and community development with the focus on growing Michigan’s economy. For more information on the MEDC and our initiatives, visit For Pure Michigan® tourism information, your trip begins at Join the conversation on: Facebook Instagram LinkedIn, and Twitter.