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.

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