The federal government plans to provide up to $325 million to Hemlock Semiconductor to produce a key material for computer chips, an announcement Monday with possible political significance as the new factory would be in the swing state of Michigan.

Hemlock Semiconductors is the only U.S.-based manufacturer of critical hyper-pure polysilicon needed for modern chips.

The award will boost Michigan’s standing in the domestic and global semiconductor supply chain and prevent disruptions to key industries — like autos.

President Joe Biden's administration on Monday announced a $325 million grant for Hemlock Semiconductor to expand manufacturing near Saginaw, creating about 180 jobs and supporting more than 1,000 construction jobs.

The funding would support 180 manufacturing jobs in Saginaw County, where Republicans and Democrats were neck-and-neck for the past two presidential elections.

Thomas Township-based Hemlock Semiconductor is the only U.S.-headquartered producer of hyper-pure polysilicon — a vital material for semiconductor chips.

In a strategic move, the U.S. government has announced a $325 million investment in Michigan's semiconductor industry, aiming to bolster domestic production and influence the upcoming presidential elections.

The U.S. Commerce Dept. said on Monday it has signed a non-binding preliminary memorandum of terms with Hemlock Semiconductor to provide it with CHIPs Act funding. Read for more.