Loading...

MEDC (Michigan Economic Development Corporation)

Lansing,  MI 
United States
https://www.michiganbusiness.org/
  • Booth: SM11

Michigan: A global innovation hub for the semi industry.

Overview

In the state that put the world on wheels, a new industrial revolution is gaining traction. Today, Michigan is accelerating into the semiconductor era. It’s a strategic, synergistic pivot that has positioned the long-established industrial powerhouse as a global leader in advanced manufacturing, clean energy, and electrified mobility. Indeed, the Michigan model offers a vivid blueprint for bridging industrial legacy with cutting-edge technology.

Home to the largest producer of polysilicon in the U.S., a top 10 semiconductor workforce, the nation's top global institute for semiconductor training, and a strong customer base to support future growth, Michigan is a global innovation hub for the semiconductor industry. 

Furthermore, Michigan developed a semi talent action team that aims to provide talent and research solutions to help employers meet potential growth of +30,000 semiconductor jobs by 2030, positioning the state as employers' go-to solution for talent and research partnership.

Come visit Team Michigan in the Smart Manufacturing Pavilion to see how Michigan can help your business.


  Press Releases

  • In the state that put the world on wheels, a new industrial revolution is gaining traction. Today, Michigan is accelerating into the semiconductor era. It’s a strategic, synergistic pivot that has positioned the long-established industrial powerhouse as a global leader in advanced manufacturing, clean energy, and electrified mobility. Indeed, the Michigan model offers a vivid blueprint for bridging industrial legacy with cutting-edge technology.

    “Obviously, semiconductors are crucial for the auto industry,” says Spencer Lucker, director of strategic talent initiatives at the Michigan Economic Development Corporation (MEDC). “But what’s so exciting is that — as a supply chain component — semiconductors support sectors that represent the wide diversity of Michigan’s economy.”

    Billions of dollars are being invested in new and expanding facilities by companies that include homegrown Hemlock Semiconductor (HSC) and Calumet Electronics. Founded in Michigan’s Calumet Township in 1968, Calumet Electronics has made its name producing Printed Circuit Boards for demanding applications, primarily in aerospace and defense. With financial support from the MEDC, Calumet has embarked on a $51 million expansion to pioneer packaged substrates critical to the semiconductor sector of the U.S. Department of Defense, with implications for advanced radar, communications, high-speed computing, and artificial intelligence.

    “Calumet Electronics is an important manufacturer for the U.S. to succeed in next-generation electronics manufacturing,” says Todd Brassard, the company’s chief operating officer. “We are also a small operation with 340 employees. Without the assistance and incentive programs offered by the MEDC, Calumet Electronics would not have been as successful as quickly. The programs offered by the MEDC will allow Calumet Electronics to change the landscape of manufacturing technology for advanced electronics in the U.S.”

    Together with investments from companies such as South Korea-based SK Siltron CSS, California-based KLA, and New York-based Corning Inc., new facilities across Michigan represent crucial pillars in the national project to build out a semiconductor supply chain. The investments are backed by hundreds of millions of dollars in state support and incentives.

    “Together, we are strengthening national and economic security by ensuring supply chains, good-paying jobs, and cutting-edge investments are where they belong — here at home,” says Gov. Gretchen Whitmer.

    Counting the Reasons

    Why are these companies investing in Michigan?

    Auto Industry Synergy: The average electric vehicle contains up to 3,000 microchips. Michigan, home to nearly one-fifth of U.S. auto production, provides a strong customer base for semiconductors.

    “There is extreme value for a company working in semiconductors to have that proximity to such a strong cluster of major buyers,” says Lucker.

    Robust Manufacturing Ecosystem: Michigan is a top five state for manufacturing, with close to 12,000 manufacturing companies that employ more than 700,000 workers.

    Research and Development: Michigan boasts the nation’s fourth-highest business research and development spending. Its four R1 universities, characterized by high research activity, significant research expenditures, and a substantial number of doctoral degrees awarded, represent a prime lure to advanced manufacturers.

    Water Resources: The average chip manufacturing facility can use 10 million gallons of ultrapure water per day, equivalent to the usage of 33,000 US households. Michigan's ample water resources can meet this high demand.

    Manufacturing Workforce: When asked to cite reasons for locating in Michigan, semiconductor manufacturers are nearly unanimous in citing workforce as the leading factor. Michigan’s advanced manufacturing workforce is the nation’s fifth largest, bolstered by a long history and the state’s forward-thinking educational system.

    “Our incredibly strong engineering talent,” says Lucker, “includes the highest concentration of engineers per capita in the country. A lot of that comes from the strength of our higher ed institutions, and it’s why semiconductors are such a ripe opportunity here.”

    Pressing the Advantage

    Far from being content, Michigan is seeking to further leverage its workforce advantage through an intricate web of educational and training programs and public-private partnerships that begin, believe it or not, as early as the fourth grade.

    “We’re doing a lot in the K-12 space,” says Lucker, “to raise awareness and understanding of the industry, helping to connect younger students to these career opportunities. Then, at the higher-ed level, we are directly supporting our institutions — both two-year and four-year colleges —  to develop curriculum hand-in-hand with semiconductor employers so that the coursework is directly related to their needs. So, it becomes a direct pipeline for our companies to recruit from those schools.”

    A key component is the Talent Action Team, launched in 2022 by Gov. Whitmer and the MEDC, touted as the first public-private state talent coalition to specifically address the talent gap in the EV and semiconductor spaces. Industry partners include HSC, SK Siltron, Corning, Calumet, and KLA. The team’s efforts earned recent recognition as one of Fast Company’s Most Innovative Companies in the Business Services category.

    The synergy between semiconductors and electric vehicles forms the basis for the Michigan Semiconductor Talent and Technology for Automotive Research (MSTAR) initiative, established in 2023. The public-private partnership is co-led by KLA and the Belgium-based technology innovation hub IMEC, with partners that include the University of Michigan, Washtenaw Community College, and General Motors. MSTAR, which received a $10 million infusion from the state in 2024, is helping to develop the talent base and infrastructure necessary to accelerate advanced semiconductor applications for electrification and autonomous mobility.

    Another key workforce development component is the Michigander Scholars program, which offers scholarships to technology students at the University of Michigan (Ann Arbor, Dearborn, and Flint), Michigan State University, Michigan Technological University, Kettering University, and Wayne State University in Detroit. Recipients must commit to signing a letter of employment with a participating industry partner, the list of which includes HSC, SK Siltron, and KLA.

    “The cherry on top,” says Lucker, “is that any scholar who accepts a full-time offer or internship with one of our participating companies can get up to $10,000 in scholarships to stay in the state and work with our Michigan companies.”

    This article is part of the Michigan Economic Development Guide from Site Selection magazine. Check out the full guide for more stories, resources and initiatives that show anyone can Make It in Michigan.

  • From the personal electronics we use each day to the automotive and health care industries, semiconductors play a critical role in our daily lives and the global economy. At the center of this thriving industry? Michigan. Computer and electronics manufacturing, including the semiconductor industry, contributes approximately $4.6 billion to Michiganís gross regional product.

    Michigan is a top 10 state for overall employment in electronic component and semiconductor manufacturing; its semiconductor workforce has seen top 10 levels of growth in the last five years at 12 percent, with an expected increase to 15 percent for the next five years. In 2022, Michigan’s auto industry purchased over $40 million in products and services from semiconductor companies in Michigan. As the global hub of the automotive industry — the state is home to nearly one-fifth of U.S. auto production — Michigan has long been a customer of the semiconductor industry, affording it deep knowledge and expertise as it becomes a central hub for this booming sector.

    Through strategic investments, educational partnerships and supportive policies, Michigan continues to enhance its leadership role in the semiconductor industry, contributing to both state and national economic growth. With an eye on the future of advanced technologies and onshoring supply chains, Michigan is positioned to be a cornerstone of America’s semiconductor future. 

    With a strategy guided by its “Make It in Michigan” plan, the state focuses on creating well-paying jobs and a skilled, talented workforce, and continuing to bring in projects that support its industries and communities. As part of this, the state pledged $500 million this year for the Strategic Outreach and Reserve (SOAR) Fund to attract and retain investments encouraging domestic development in key industries like clean energy, semiconductors and mobility. These investments, and the state’s legacy of automotive and manufacturing success, position Michigan as a leader in the next generation of the semiconductor industry.

    Semiconductor Companies Are Shaping the Future in Michigan

    Michigan’s commitment to and investments in the semiconductor industry’s success — and its stronghold at the heart of connected industries like automotive and manufacturing — make it a top state for semiconductor growth. Thanks to a supportive business ecosystem and talent solutions, leading semiconductor companies are building and growing in Michigan with a flurry of investments and expansions announced in recent years.

    Hemlock Semiconductor, the largest producer of hyper-pure polysilicon in the U.S., received the state’s largest proposed investment from the CHIPS and Science Act in October 2024. The Saginaw-based manufacturer was awarded $325 million to build a new facility supporting 180 advanced manufacturing jobs and over a thousand construction jobs. The company also received $40 million from the Make It in Michigan Competitiveness Fund, an initiative specifically designed by the state to match federal grant opportunities.

    The landmark deal demonstrates how years of careful groundwork enabled Team Michigan to move quickly when a once-in-a-generation opportunity emerged, thanks to the bipartisan work of its legislature, state departments and local development organizations. 

    “The U.S. needs a reliable source of polysilicon, which is the most critical component and material in semiconductors, and Hemlock has a decades-long presence in Michigan,” said U.S. Secretary of Commerce Gina Raimondo. 

    As a homegrown company with significant contributions to the semiconductor industry, Hemlock was also chosen as the site of Governor Gretchen Whitmer’s CHIPS Act executive directive signing in August 2022 aimed at boosting domestic chip manufacturing and remains a central anchor of the state’s industry. 

    Calumet Electronics Corp., the first company to build organic substrates in the U.S., is also enhancing its 35,000 square-foot manufacturing facility to scale production of high-density build-up substrates, crucial for the defense, aerospace engineering and electric vehicle (EV) industries. The investment in the Upper Peninsula will create 80 engineering jobs and further solidify the state as a leader in the semiconductor industry. 

    “MEDC [Michigan Economic Development Council], along with the Keweenaw Economic Development Alliance, has been very supportive of Calumet Electronics throughout this very critical process,” said Calumet Electronics Vice President and Chief Operations Officer Todd Brassard at the time of the announcement. “We are committed to continue advancing Michigan’s role in electronics manufacturing.”

    Meanwhile, Silicon Valley-based KLA chose Michigan over 350 other locations to build its R&D semiconductor research center and second U.S. headquarters. KLA chose the state for its attractive business climate, logistical assets and rich talent base. Soon after the commitment, the company more than doubled the original expected investment to more than $200 million and increased its commitment from 500 to 600 high-tech, high-wage jobs.

    “When we announced KLA’s plans for bringing our second North American headquarters to Michigan, we knew it was going to be an exceptional place to expand our R&D programs and develop a new AI center of excellence to continue solving complex customer problems,” said KLA Chief Strategy Officer Bobby Bell.

    In July 2021, semiconductor wafer manufacturer SK Siltron announced plans for a $300 million expansion of operations in Bay County to produce silicon carbide wafers for semiconductors, creating up to 150 jobs. In September 2022, the company celebrated the ribbon cutting of the new facility, where they are further strengthening the state’s semiconductor supply chain.

    “SK Siltron CSS is thrilled to expand our presence in Michigan and reinforce our commitment to the entire Bay City community, while creating high-paying jobs and new investment opportunities,” said Jianwei Dong, CEO of SK Siltron CSS, at the 2022 ribbon cutting. “This significant investment in Bay City will further boost the confidence levels of not only our customers, but also the entire electrical vehicle value chain to accelerate the pace of EV adoption.”

    As companies in the semiconductor industry continue to invest in the state, they contribute to the steady momentum building over the years that makes Michigan well-suited to house the industry’s future.

    Building a Semiconductor Talent Pool

    Given this influx of investments by global semiconductor companies, it comes as no surprise that Michigan has the fifth-largest advanced manufacturing workforce in the country and is helping small to medium-sized manufacturing companies adopt and transition to advanced technologies, like semiconductors for EV batteries. To do this, Michigan has formed strategic partnerships and invested in education initiatives to further set itself — and its workforce — apart.

    In 2022, the state joined the SEMI Foundation, an organization supporting economic opportunity for workers and the sustained growth of the microelectronics industry, investing $3 million for the Semiconductor Career and Apprenticeship Network (SCAN) in Michigan to create a pipeline of well-paying industry jobs. Announced in May 2022, the SCAN program is an initiative aimed at creating pathways and opportunities for job seekers and tools and systems for semiconductor companies to attract, develop and retain a diverse, innovative and skilled workforce. 

    A year later, Michigan established the Semiconductor Talent and Technology for Automotive Research (MSTAR) initiative to create a global semiconductor center of excellence. The MSTAR initiative is a public-private partnership with semiconductor company KLA, technology innovation hub Imec, the University of Michigan, Washtenaw Community College and General Motors. In June 2024, the state announced a $10 million investment in MSTAR with the goal of making Michigan the world’s leader in automotive semiconductor technology and talent development. As the global hub of the automotive industry, Michigan has long been a customer of the semiconductor industry, affording it deep knowledge and expertise. 

    Similarly, the MEDC has invested $3.8 million in grants with $600,000 in matching funds to support eight local higher education institutions’ semiconductor education and training programs to help build the workforce needed as the industry grows. Some of the recipients include: 

    • Delta College, which will use the funding for both adult learners looking to expand their skills or change careers and middle- and high-school students with STEM exploration programs. 

    • Lansing Community College, which is launching a boot camp for entry-level semiconductor technician roles.

    • Michigan Technological University, which plans to expand its semiconductor education and training programs across the state’s Upper Peninsula. 

    In 2022, Governor Whitmer and the MEDC launched the Talent Action Team, which works across public sector, industry partners and training institutions to develop a workforce that helps attract long-term, sustainable investments from high-tech companies around the world. With a focus on the EV and semiconductor industries, the work of the Talent Action Team places Michigan in a strong position to attract investments from global semiconductor companies. Through these talent initiatives, Michigan is emerging as a leader in semiconductor talent development, ensuring a skilled talent pool prepared to meet the evolving needs of the industry. 

    Thanks to a strong commitment to innovation, along with a historic foundation in automotive and manufacturing, it is clear why leading semiconductor companies and prospective talent are choosing Michigan to grow and shape the future. To learn more about why companies are choosing to Make It in Michigan, visit michiganbusiness.org/pure-opportunity.

    This article was originally published on Trade & Industry Development

  • A thriving semiconductor industry is driving manufacturing and R&D while supporting a new tech ecosystem

    Michigan’s state motto is Si quaeris peninsulam amoenam circumspice, which translates to “If you seek a pleasant peninsula, look about you.” But a more appropriate maxim today might be Scimus res facere, or “We know how to make stuff.”

    Long known for its automotive manufacturing prowess, Michigan has been diversifying into aerospace, defense, and healthcare, all fueled by a commitment to harnessing the power of semiconductors. This has been aided by more than $1.2 billion in federal funding from the CHIPS Act, the Bipartisan Infrastructure Law, and the Inflation Reduction Act. The state’s Make It in Michigan economic development strategy drives semiconductor manufacturing, research, and development while supporting the ancillary businesses that thrive in the same tech ecosystem.

    It’s paying off: Michigan’s economic momentum has reached new heights, with the state achieving its highest-ever ranking in Area Development’s annual Top States for Doing Business list. Michigan holds the No. 10 spot overall, up from No. 13 last year, reflecting the tangible results of the Make It in Michigan strategy. Semiconductor manufacturing giant KLA Corporation recently opened a second U.S. headquarters outside of Ann Arbor, and the California-based company Indie Semiconductor committed $12.5 million to build a best-in-class semiconductor design and testing facility.

    “There are compelling reasons for these companies to consider Michigan,” says Eric Shreffler, executive vice president of market development at Michigan Economic Development Corporation (MEDC). “They want to produce stuff here based on the schools that we have, the research that’s being done, the workforce that we have, and then the unparalleled history of manufacturing in Michigan.”

    A COMMITMENT TO CLEAN ENERGY

    The semiconductor business is expected to top $1 trillion by 2030. Current federal funding is a down payment toward reestablishing domestic supply chains. But as Shreffler puts it, “If you stop with the down payment, you’re never going to own the house.”

    That’s where Michigan’s strength in applied engineering comes in. Hemlock Semiconductor is one of the world’s largest producers of polysilicon, a vital component of semiconductors. Since 2022, the company has invested more than $350 million in its facility in Thomas Township. “The ability to use applied engineering is our bread and butter,” says Cynthia Hutchison, CEO of the U.S. Center for Advanced Manufacturing, a nonprofit organization based in Troy. “Michigan has consistently pushed the right button where we identify and test the right technology and then put it into existing manufacturing to accelerate it and make it more productive.”

    Thanks to a commitment to sustainability, including historic clean energy legislation from Governor Gretchen Whitmer and the Michigan legislature—which passed a bill in 2023 establishing a carbon-free mandate by 2040—the state’s automotive industry leaders are making strides toward a cleaner future. This past July, General Motors received $500 million from the Department of Energy to upgrade its Lansing Grand River assembly facility for the next wave of electronic vehicles, which requires an increase in semiconductors. Michigan’s water, wind, and solar funding for clean energy initiatives has translated into more than 120,000 jobs. “If I were in the semiconductor industry, I would love to go to a state with an ethos committed to accelerating clean energy,” Hutchison says. “Michigan has the infrastructure to produce energy without a significant impact on the land, which reduces costs.”

    A SEMICONDUCTOR LEADER

    Another critical component of the state’s investment efforts is the Battery and Advanced Manufacturing Challenge, a $125 million investment from the Make It in Michigan fund that offers matching grant dollars to help bring federal infrastructure to transformative projects in the state. With the help of the MEDC, Calumet Electronics, a 300-employee company in the Upper Peninsula, secured a $40 million contract from the Department of Defense as well as receiving $10 million from the MEDC itself to build a new facility for manufacturing IC substrates, the circuit boards to which semiconductors attach. Calumet has become a global center for manufacturing, research, and development of new technologies, but it’s not the only beneficiary of the MEDC funds. “What we’re doing helps bring more businesses to Michigan so we can iterate through innovation at home, not overseas,” says Meredith LaBeau, Calumet’s CTO. “The MEDC is getting their heads around the importance of the back-end pieces like IC substrates and how those can also be a robust economic development driver.”

    With the massive amount of dollars available and state leaders all-in on innovation and collaboration, Michigan is well-positioned to be a leader in the semiconductor space for decades. The rapid rise of artificial intelligence, a U.S.-born technology that requires massive amounts of semiconductors, provides a host of new transformative opportunities, but ones that Hutchison says need to be carefully looked after. “We can’t afford to play catch-up with AI—we invented it,” she says. “So how do we maintain the right amount of management without controlling it and without disincentivizing the private sector?”

    It’s a big question, but remember, Scimus res facere. “We’re hard workers,” LaBeau says. “We get our hands dirty and solve problems. If we’re going to be secure as a nation, we must bring manufacturing back from overseas. There’s no better place to do it than in Michigan and no better support than the MEDC.”

    This article orginially appeared in Fast Company.


Send Email

Type your information and click "Send Email" to send an email to this exhibitor. To return to the previous screen without saving, click "Reset".