- Corning and Hemlock Semiconductor to start up new solar wafer manufacturing plant in Michigan.
- Project qualified to claim tax credits through the Inflation Reduction Act and the CHIPS Act.
- The facility is expected to be one step further in terms of the strength of a domestic solar manufacturing supply chain.
- The funding to create jobs has come in the form of an $110 million allocation to the Michigan Economic Development Corp.
These will be Corning Inc., along with its subsidiary, Hemlock Semiconductor, moving forward in the solar manufacturing industry by making silicon wafers in Michigan. Making use of the incentives by the Inflation Reduction Act and CHIPS and Science Act, these companies would enlarge their role in the US’s solar sector.
Also read: UAE’s Masdar and EMSTEEL Pilot Green Hydrogen Steel Production
This new plant for Michigan will add silicon ingots and wafers production for solar panels into their portfolio. Hemlock Semiconductor traces its history back to the US polysilicon market; they were once one of the major contributors, having provided up to a quarter of the world’s polysilicon supply along with other producers of American origin, among whom are REC Silicon and Wacker Chemie.
However, once China’s production surge in 2013 became a problem, Hemlock and its competitors started cutting U.S. capacity. More recently, REC Silicon reopened its facilities in Washington to feed Qcells’ new American-made solar panels, reviving the polysilicon fabrication comeback in the U.S.
In 2022, Corning CEO Wendell Weeks said in an earnings call that Hemlock was refreshing its capacity by focusing on “take-or-pay contracts for solar-grade polysilicon.” Weeks underlined that Corning’s technical capabilities would be key to driving growth in the renewable energy space, with promising expansion in solar manufacturing.
Last week, the Department of Commerce announced preliminary funding terms with Hemlock: up to $325 million from the CHIPS and Science Act that will support an advanced production facility at Hemlock’s Michigan campus, which will meet semiconductor-grade polysilicon needs, including polysilicon for solar panel production.
Also read: Nevada Paves the Way for U.S. Clean Energy Future
The Michigan Economic Development Corp further approved a new facility valued at $900 million during February. The company had allocated nearly $110 million towards this project and assisted Corning along with its subsidiary Solar Technology LLC in erecting a manufacturing site for solar components close to the location of Hemlock. More than 1,100 new jobs are expected from this facility.
The facility would be eligible for a 25% tax credit through the CHIPS ITC following an update from the Treasury Department, further incentivizing solar wafer production under a new 48D Advanced Manufacturing Investment Credit.
Corning confirmed plans for a wafer factory, but exact production timelines and factory specifications remain undisclosed, according to Solar Power World.
Today, there is only one functioning wafer manufacturer in the United States: Qcells in Georgia, which uses polysilicon from REC Silicon to make the only all-American silicon solar panel. Another company, NorSun, announced it would build a wafer factory in Oklahoma, but no construction has begun.
This facility will be in Michigan and will be the third U.S. wafer facility Corning has built. It is one step toward a more robust domestic supply chain for solar energy components.
Also read: Latest News on Solar Power, Sunlight Power Energy
With federal and state support for the venture, Corning and Hemlock’s solar wafer production is a landmark step for the U.S. solar manufacturing landscape. This new facility not only strengthens the supply chain but also represents a commitment to job creation and renewable energy growth. As the U.S. strives for a resilient, homegrown solar industry, Corning’s Michigan facility could play a crucial role in shaping the future of domestic solar production.
