Hemlock Semiconductor

Hemlock Semiconductor (HSC) is a polysilicon manufacturer headquartered in Hemlock, Michigan, and named for the community where its principal manufacturing operations were established. Founded in 1961, the company produces hyper-pure polycrystalline silicon, commonly called polysilicon, an upstream material used in the manufacture of solar photovoltaic equipment and electronic semiconductor products. Its position in the supply chain is industrial rather than consumer-facing: HSC supplies a material whose purity and consistency affect the performance of downstream wafers, cells, modules, and semiconductor components. The company developed through relationships with major chemical, materials, and semiconductor-industry businesses. Its ownership history has included Corning, Dow Corning, Shin-Etsu Chemical, Shin-Etsu Handotai, and Mitsubishi Materials. Following the end of the Dow Corning joint venture in 2016, Hemlock Semiconductor continued operating as an independent entity with Corning holding a stated 80.5% interest and Shin-Etsu Chemical holding 19.5%. The business is therefore closely connected to the global advanced-materials and electronics sectors while remaining separately operated. HSC expanded its manufacturing footprint beyond Michigan through a large joint-venture project near Clarksville, Tennessee. The approximately $1.2 billion facility officially opened in 2012, but it did not enter normal production and no product was made there. The project was subsequently affected by a worldwide polysilicon oversupply, intense competition from Chinese producers, and trade disputes. In December 2014, HSC announced that the Tennessee plant would be permanently closed. Some of the approximately 50 Tennessee employees were offered positions in Michigan or at Dow Corning facilities, while others received severance. Market conditions and trade policy continued to influence HSC's Michigan operations. The company attributed approximately 100 layoffs in the first quarter of 2018 to weakened demand and the effects of United States export tariffs imposed by China in 2014. It reported a further reduction of approximately 50 positions in 2020 amid continuing tariff-related difficulties and the effects of the COVID-19 pandemic. These events illustrate the exposure of polysilicon producers to global capacity cycles, cross-border trade measures, and fluctuations in solar-industry demand. The company broadened its materials capabilities in 2020 by acquiring DuPont's trichlorosilane business, including a manufacturing facility in Midland, Michigan. Trichlorosilane is an important process chemical in polysilicon production. In October 2022, HSC broke ground on a $375 million Next Generation Finishing project in Michigan. The project was intended to modernize finishing processes, strengthen manufacturing capabilities, and create as many as 170 jobs. Public support included a $27 million Michigan Strategic Fund Strategic Site Readiness Program grant and additional legislative assistance reported at $10 million. In addition to manufacturing investment, HSC has supported education and regional development. In 2019, it contributed $100,000 toward the Hemlock Area STEM Center, designed to give kindergarten-through-high-school students opportunities to explore science, technology, engineering, and mathematics. The company also supports a youth engineering scholarship program at Michigan Technological University; in 2023, its thirteenth application year, the program provided 30 full scholarships for a summer engineering program. HSC's current identity is consequently defined by high-purity materials production, supply-chain investment, and a continuing presence in Michigan's industrial and educational communities.

Hemlock Semiconductor was founded in 1961 and took its name from Hemlock, Michigan, the location of its principal production site. From its origin, the company focused on high-purity polycrystalline silicon, a specialized material required by both the semiconductor and solar photovoltaic industries. Unlike a consumer brand, HSC operates as an upstream industrial supplier: its output is processed by other manufacturers into electronic and photovoltaic products. The company's development has been tied to a group of large materials and chemical enterprises. Its ownership and partnership history included Corning Incorporated and Dow Corning, as well as Japanese businesses associated with Shin-Etsu and Mitsubishi Materials. The company later became owned by Corning and Shin-Etsu Chemical. After Dow Chemical assumed full ownership of Dow Corning in 2016, Hemlock Semiconductor continued as a separately run business. The ownership arrangement described at that time gave Corning an 80.5% stake and Shin-Etsu Chemical a 19.5% stake. HSC pursued major capacity expansion during the period when solar manufacturing was growing rapidly. Together with Japanese joint-venture partners, it developed a new facility near Clarksville, Tennessee, at an announced investment of approximately $1.2 billion. The plant officially opened in 2012, but it never entered production and no product was inventoried there. A further expansion of approximately $3 billion had been discussed in 2011 as the company sought to respond to international competition, particularly from China. The expansion strategy was overtaken by a severe global polysilicon oversupply and increasingly difficult trade conditions. In December 2014, HSC announced that the Tennessee facility would be permanently closed. The company cited unfavorable market conditions and continuing global trade disputes. Approximately 50 people were associated with the Tennessee operation; some were offered jobs at the Hemlock, Michigan site or at Dow Corning facilities, while others received severance. In 2015, Google announced plans to acquire the site and invest more than $600 million to redevelop it as a data center. The company also experienced the effects of the polysilicon market downturn in Michigan. HSC reported that it laid off roughly 100 workers during the first quarter of 2018, linking the decision to lower demand and to United States export tariffs imposed by China in 2014. In 2020, it announced another reduction of about 50 positions, citing continuing tariff challenges and the disruption caused by the COVID-19 pandemic. HSC expanded its portfolio in September 2020 through the acquisition of DuPont's trichlorosilane business and its Midland, Michigan manufacturing facility. The transaction added a related process-material capability to the company's polysilicon operations. In October 2022, HSC began work on a $375 million Next Generation Finishing project. The project was designed to modernize the final stages of polysilicon manufacturing and was expected to create as many as 170 jobs. Michigan public support included a reported $27 million Strategic Site Readiness Program grant, along with additional legislative assistance reported at $10 million. Community and education programs form another part of HSC's public profile. In 2019, the company committed $100,000 to construction of the Hemlock Area STEM Center, a regional facility intended to encourage science, technology, engineering, and mathematics learning among students from kindergarten through high school. HSC also supports a youth engineering scholarship program at Michigan Technological University. In 2023, the program's thirteenth year, 30 full scholarships were made available for a summer engineering program. HSC remains an industrial materials company whose importance is primarily measured through manufacturing capability and supply-chain relationships. Its history reflects the opportunities and risks of polysilicon production: strong demand from solar and electronics, high capital requirements, exposure to international competition, and sensitivity to trade policy. Its Michigan investments and process-material expansion indicate a continuing effort to modernize and maintain a domestic position in a globally integrated industry.

• 2023

  Thirteenth year of Michigan Tech youth engineering scholarships

  [1]Hemlock Semiconductoren.wikipedia.org

  HSC's youth engineering program scholarship reaches its thirteenth application year and provides 30 full summer-program scholarships.

• 2022

  Next Generation Finishing project begins

  [1]Hemlock Semiconductoren.wikipedia.org

  The company breaks ground on a reported $375 million project to modernize polysilicon finishing operations in Michigan.

• 2020

  DuPont trichlorosilane business is acquired

  [1]Hemlock Semiconductoren.wikipedia.org

  HSC acquires DuPont's trichlorosilane business and its Midland, Michigan facility.

• 2019

  STEM center contribution

  [1]Hemlock Semiconductoren.wikipedia.org

  HSC contributes $100,000 to construction of the Hemlock Area STEM Center.

• 2016

  Post-Dow Corning ownership structure takes effect

  [1]Hemlock Semiconductoren.wikipedia.org

  After Dow Chemical assumes full ownership of Dow Corning, HSC continues as an independently operated company owned by Corning and Shin-Etsu Chemical.

• 2014

  Tennessee plant closure is announced

  [1]Hemlock Semiconductoren.wikipedia.org

  HSC announces the permanent closure of the Tennessee facility because of oversupply and global trade challenges.

• 2012

  Tennessee facility officially opens

  [1]Hemlock Semiconductoren.wikipedia.org

  HSC's approximately $1.2 billion plant near Clarksville officially opens, although it does not produce or inventory polysilicon.

• 2011

  Further Tennessee expansion is considered

  [1]Hemlock Semiconductoren.wikipedia.org

  The company discusses a potential additional investment of approximately $3 billion near its planned Tennessee operation to respond to international manufacturing competition.

• 1961

  Hemlock Semiconductor is founded

  [1]Hemlock Semiconductoren.wikipedia.org

  The company is established in Hemlock, Michigan, and begins its history as a producer of high-purity polycrystalline silicon.

A United States-based, high-purity polysilicon and silicon-materials supplier serving demanding solar and semiconductor applications.

• Advanced materials

  Hyper-pure polysilicon

  Hemlock Semiconductor's principal product is hyper-pure polycrystalline silicon. It is supplied as a foundational material to solar photovoltaic and electronics manufacturers, where purity, consistency, and process performance are essential to the production of wafers, solar cells, modules, and semiconductor devices. HSC's facilities have been described as producing approximately 30,000 to 35,000 tons annually, placing the company among the world's larger polysilicon producers.

• Semiconductor materials

  Semiconductor-grade polysilicon

  This high-purity silicon material serves the electronics and semiconductor sector. It is manufactured to demanding specifications for downstream conversion into silicon-based electronic components. The product reflects HSC's historical role as a United States-based supplier to advanced electronics manufacturing rather than a branded finished-device maker.

• Solar photovoltaic materials

  Solar-grade polysilicon

  HSC supplies polysilicon used in the solar photovoltaic value chain. Solar manufacturers process the material into wafers and cells that become part of photovoltaic modules. Demand for this product has exposed the company to global solar-capacity cycles, Chinese competition, oversupply, and international trade measures.

• Silicon-processing chemicals · 2020

  Trichlorosilane

  In 2020, HSC acquired DuPont's trichlorosilane business, including a Midland, Michigan manufacturing facility. Trichlorosilane is a process chemical associated with polysilicon production, so the acquisition broadened HSC's position across the materials and chemical steps supporting high-purity silicon manufacturing.

• 2023Michigan Tech youth engineering scholarship program

  United States · Michigan

  HSC supported a youth engineering program scholarship at Michigan Technological University. In the program's thirteenth year, students could apply for full scholarships to a summer engineering program held in July 2023.

  Outcome. Thirty full scholarships were provided for the 2023 summer engineering program.

  Source
• 2019Hemlock Area STEM Center support

  United States · Michigan

  HSC contributed $100,000 toward construction of the Hemlock Area STEM Center, a regional educational facility intended to provide kindergarten-through-high-school students with opportunities to explore science, technology, engineering, and mathematics.

  Outcome. The contribution supported development of a local STEM education resource.

  Source

• 2022

  Next Generation Finishing modernization projectGeneration change

  Background

  HSC identified a need to modernize polysilicon finishing processes and reinforce its Michigan manufacturing base.

  Action taken

  The company broke ground on a reported $375 million Next Generation Finishing project, with expected capacity for as many as 170 new jobs.

  Aftermath

  The project received reported public support including a $27 million Michigan Strategic Fund grant and additional legislative assistance reported at $10 million.

  Project investment. $375 million announced project (2022)

  Source

• 2020

  Acquisition of DuPont's trichlorosilane businessM&A

  Background

  HSC sought to expand its silicon-materials and process-chemical capabilities.

  Action taken

  The company acquired DuPont's trichlorosilane business, including its Midland, Michigan manufacturing facility.

  Aftermath

  The transaction added a related chemical operation to HSC's polysilicon manufacturing footprint.

  Source

• 2016

  Continuation as an independently run company after Dow Corning restructuringStrategy

  Background

  Dow Chemical assumed full ownership of Dow Corning, ending the companies' 73-year joint venture.

  Action taken

  Hemlock Semiconductor continued operating independently with Corning and Shin-Etsu Chemical as its stated shareholders.

  Aftermath

  The ownership structure described for the company was Corning at 80.5% and Shin-Etsu Chemical at 19.5%.

  Source

• 2014

  Permanent closure of Tennessee manufacturing facilityStrategy

  Background

  The Tennessee plant had officially opened in 2012 but never produced polysilicon. Industry oversupply, competition from China, and continuing global trade disputes undermined the facility's commercial prospects.

  Action taken

  HSC announced that the approximately $1.2 billion facility near Clarksville would be permanently closed.

  Aftermath

  Some of the approximately 50 employees were offered positions in Michigan or at Dow Corning facilities, while others received severance. Google later announced plans to acquire and redevelop the site as a data center.

  Original Tennessee facility investment. (2012-2014)

  Source

1. 1Hemlock Semiconductoren.wikipedia.org