New semiconductor manufacturing facility in Michigan will decrease our reliance on China, Whitmer says

semiconductor wafer manufacturing facility ribbon cutting
Photo credit State of Michigan

BAY CITY (WWJ) -- Why import these important parts from China when we can make them right here in Michigan?

That's the gist of the message as Gov. Gretchen Whitmer on Thursday joined business, state, and local officials to celebrate what she says calls Michigan's "bold investments" in semiconductor and polysilicon (aka computer chip) manufacturing.

A ribbon cutting was held Thursday for semiconductor wafer manufacturer SK Siltron’s new facility in Bay City, after Whitmer fought for and secured a $300 million investment, according to the governor's office.

Whitmer says that moving the critical semiconductor supply chain home from China to Michigan will create good-paying jobs, cut down on shortages and delays, make businesses more efficient, and ultimately pass savings on to consumers.

“The products SK Siltron manufactures are the building blocks of countless products and industries: electric vehicles, solar panels, smartphones, and so much more — we cannot let China dominate this market," Whitmer said, in a statement, "I am proud that Michigan was selected for this $300 million investment over several other states, proving that we have the skilled workforce, growing economy, and strong business-friendly environment conducive to attract projects from one of the world’s most innovative companies. I will work with anyone to keep bringing supply chains home, build on our high-tech manufacturing leadership, and create opportunity for Michiganders in every region.”

The new Bay City facility is expected to create around 150 new jobs, and help address the chip shortage plaguing the U.S. auto industry.

“This new manufacturing facility will create good-paying jobs in mid-Michigan and boost American manufacturing,” said Congressman Dan Kildee (MI-05), in a statement, in a release. “With new laws like the CHIPS and Science Act, we’re bringing back manufacturing jobs to Michigan, fixing supply chains and helping to lower costs for Michigan families. Making wafers and semiconductors here in Michigan will decrease our reliance on foreign-made goods and support good-paying jobs. Michigan has the best workers in the world, and I applaud SK Siltron for expanding their commitment to our community.”

This comes a couple of weeks after President Joe Biden signed the CHIPS and Science Act, which will fund $52 billion in incentives to boost domestic semiconductor production and research, $2 billion of which will be dedicated to incentivizing production of semiconductors used by automakers and parts suppliers.

In early August, Whitmer signed an executive directive instructing state departments and agencies to leverage incoming resources from the CHIPS and Science Act as effectively and efficiently as possible.

According to state data, the semiconductor industry contributes $4.6 billion in total gross regional product for Michigan. Michigan is also among the top states in the nation for semiconductor manufacturing, with industry jobs growing 12% between 2015-2020.

Featured Image Photo Credit: State of Michigan