Corning Inc. has announced plans to build a new factory west of Saginaw that aims to address gaps in the U.S. solar energy supply chain. Recently, state officials approved $109 million in subsidies for the $900 million project. 

The factory will be constructed by Corning subsidiary Solar Technology LLC, a company established in 2023 and registered in Michigan earlier this year. The 1-million-square-foot facility will be located adjacent to Hemlock Semiconductor. 

Set to open in 2028, the Richland Township plant is projected to create over 1,100 jobs focused on producing solar components. This development is expected to bolster Michigan’s efforts to attract more clean energy investments. 

JoAnn Crary, president of Saginaw Future Inc., described the project as “one of the largest job creation initiatives we’ve seen in a generation,” noting that it will likely generate significant additional investment. 

An Industry Leader 

Corning, headquartered in New York, holds an 80% stake in Hemlock Semiconductor, the leading U.S. producer of hyperpure polysilicon. This material is essential for semiconductors and solar panels, with Hemlock’s polysilicon used in a third of global electronic devices. 

The new facility’s output will support the growing demand for solar energy, driven by the $750 billion Inflation Reduction Act of 2022, which aims to boost clean energy investments. The U.S. saw a 35% increase in solar capacity in 2023, and by 2050, solar is expected to become the largest source of power generation. 

Despite this growth, 2024 is considered a critical year for the solar sector due to domestic manufacturing shortages. Components from the Michigan factory will be distributed globally, with hopes of strengthening domestic manufacturing both for Corning and the industry as a whole, according to Josh Hundt, chief projects officer for the Michigan Economic Development Corp (MEDC). 

The Michigan Strategic Fund, which oversees the SOAR (Strategic Outreach and Attraction Reserve) fund, unanimously approved the state funding for the project. The support includes: 

  • $29 million from the Strategic Site Readiness Program for infrastructure upgrades in Richland Township and surrounding areas 
  • $12.2 million in waived state taxes on manufacturing equipment 
  • A 12-year property tax abatement from Richland Township on the factory’s estimated $375 million value 

Additional subsidies include a grant request from Saginaw County to the Michigan Department of Transportation, with details still pending. 

Scott Forester, a Corning vice president, highlighted that the project leverages both market demand and government support at federal and local levels. Information on federal subsidies for the project was not available at the time. 

With this new award, the SOAR fund balance is $454.1 million, according to MEDC spokesperson Otie McKinley. This award follows a $27 million grant from the Strategic Site Readiness Program in 2022, which supported Hemlock Semiconductor’s $375 million expansion in Thomas Township. 

A Local Economic Boost 

The new factory will offer starting wages of $21 per hour, or $43,680 annually, which is slightly above the local average. The overall average wage at the factory is expected to be $28 per hour, or $58,240 per year. 

Despite a 4.6% unemployment rate in Saginaw County in December—slightly higher than the state’s 4.3%—the area remains “distressed” due to low employment rates among adults aged 25 to 54, according to the W.E. Upjohn Institute for Employment Research. 

In 2022, Michigan’s clean energy sector added around 5,400 workers, increasing the total to approximately 123,983, or 2.5% of the state’s workforce. 

Final Thoughts on Solar Component Factory

The generous support from the Michigan Strategic Fund, coupled with the strategic location near Hemlock Semiconductor, positions this facility to play a pivotal role in meeting the growing demand for solar components. As the solar industry continues to expand, this development is expected to attract further investments and stimulate economic growth in the region. 

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