The reshoring of semiconductor manufacturing is both a necessity and a national defense imperative. Since Congress approved the 2022 CHIPS and Science Act, pairing a 25% investment in tax credits with $39B in manufacturing incentives and $11B for research and development, America has seen half a trillion dollars in private investments. Across 20 states, an estimated 125,000 jobs are currently at work on making U.S. semiconductor manufacturing a juggernaut in domestic manufacturing.
Meanwhile, solar energy remains an important, low-cost solution for fueling semiconductor and other industrial and residential needs.
Highland Materials is poised to be an important upstream processor of polysilicon essential to semiconductors and solar panels. Its unique recycling technology for reentry of saw kerf and solar modules will be the lowest cost manufacturer of purified polysilicon to both industries.
Currently domestic manufacturing capacity of polysilicon is approximately 40,000MT with more than half of it being used by the semiconductor industry, resulting in a shortfall to a growing domestic demand for semiconductors and solar panels. Highland Materials will initially produce 16,000MT of polisilicon per year and continue to ramp production at its Tennessee facility to meet the strategic U.S. need to 24,000MT.
Highland Materials was the recipient of a $255.6M in Qualifying Advanced Energy Project Credit (48C) tax credits under U.S. Section 48C. The 48C was expanded to provide an additional credit allocation of $10 billion, with $4 billion set aside for projects in designated energy communities. The 48C credit offers up to 30% of qualified investments for qualifying projects.
Local, state, and TVA entities are providing more than $140M in incentives. Other critical infrastructure loans and private investments are also being pursued by Highland Materials. The two-year process for construction of the Tennessee facility is expected to cost $950M that will offer low-cost polisilicon to upstream U.S. semiconductor and solar manufacturers.
