 March 30, 2007
Contact: Michael Shore, MEDC
Granholm Announces Support for Potential Hemlock Semiconductor Expansion in Saginaw County Governor Jennifer M. Granholm today announced approval of a state tax credit and other incentives to encourage Hemlock Semiconductor Corporation (HSC) to invest up to $1 billion in a multi-phase expansion of its manufacturing facility in Hemlock. If approved by the company, the project will create 589 new jobs, including 270 directly by the company. Hemlock Semiconductor 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. “Hemlock Semiconductor is a great example of the types of high-tech, high-growth companies we are working to bring to Michigan to invest and grow,” Granholm said. “This company chose to expand in Michigan twice already, and we look forward to continuing to work with them to transform our economy and create good-paying jobs for workers in Saginaw County.” The Michigan Economic Development Corporation is working closely with the company as it weighs Michigan against another competing U.S. site. Based on the MEDC’s recommendation, the Michigan Economic Growth Authority Board today approved a state tax credit valued at $8.1 million over 15 years to convince the company to expand in Michigan. The MEDC will provide job-training assistance through the Economic Development Job Training program and funding for public infrastructure improvements through the Community Development Block Grant program. To support the project Thomas Township is considering a 12-year abatement estimated at $21 million. “Hemlock Semiconductor has grown in Michigan because we are a great state to do business in,” MEDC President and CEO James C. Epolito said. “We have a strong business case for the company’s continued prosperity in Michigan.” If approved by the company, this will be HSC’s third expansion in Hemlock in the past three years. The prior two projects were won by Michigan in head-to-head competition with other states and countries with the help of MEDC assistance. Combined, the expansions are expected to generate 1,174 new jobs and up to $1.5 billion in capital investment. “We’ve received tremendous support from state and local officials, which will be a key element in our investment decision making process,” Hemlock Semiconductor president and CEO Rick Doornbos said. “Governor Granholm and Jim Epolito have been personally involved in supporting us, and we appreciate the attention they’re giving us as we consider our future business needs.” An economic analysis conducted by the MEDC estimates that increased economic activity created by the HSC expansion will generate an additional 319 indirect Michigan jobs, in addition to the 270 created directly by the company. The project is expected to generate more than $699 million in personal income for Michigan workers over the life of the tax credit. HSC was formed as a wholly owned subsidiary of Dow Corning Corporation in 1979. In 1984, the company formed a joint venture with two of Japan’s largest silicon wafer manufacturers, Shin-Etsu Handotai Company Limited and Mitsubishi Materials Corporation. HSC currently has 441 employees in Michigan. “We’re pleased that the governor, the MEDC, the city of Saginaw and Thomas Township worked together to provide a competitive incentive package,” Saginaw Future President JoAnn Crary said. “We’re so proud of our great partnership.” In her 2007 State of the State address, Granholm emphasized the importance of making Michigan a global economic powerhouse in the 21st century. Since January 2005, the Governor and the MEDC have announced the creation or retention of more than 182,000 jobs as a result of targeted assistance provided by the MEDC. The Michigan Economic Development Corporation, a partnership between the state and local communities, promotes smart economic growth by developing strategies and providing services to create and retain good jobs and a high quality of life. For more information on the Michigan Economic Development Corporation’s initiatives and programs, visit the Web site at www.michigan.org.
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