U.S.-based polysilicon manufacturer Hemlock Semiconductor has acquired the trichlorosilane (TCS) business of DuPont.
The transaction involves the purchase of Dupont’s TCS manufacturing facility in Midland, Michigan. The factory is located 20 miles north of the Hemlock Semiconductor campus in Saginaw.
Hemlock Semiconductor said the new factory will help it to better control supply and reduce costs by becoming vertically integrated in terms of polysilicon production. Purified trichlorosilane (TCS) is a key material for the deposition of polysilicon.
“This acquisition will strengthen our already strong semiconductor position,” said Hemlock Semiconductor CEO Mark Bassett. “It will help accelerate our growth in the solar sector since we’ll be able to offer ultra-pure polysilicon of exceptional quality that reduces the carbon footprint of producing solar panels at a substantially lower cost.”
DuPont said that the deal has secured regulatory approval. “DuPont received pre-tax cash proceeds of $550 million at closing and expects to receive additional pre-tax cash consideration of $175 million over the next 36-months associated with the settlement of an existing supply agreement dispute with Hemlock,” it said in a press release.
The deal includes the acquisition of Dupont’s 40.25% stake in Hemlock Semiconductor by its other largest shareholder, Corning Inc., which now owns 80.5%. The remaining 19.5% stake is still held by Japanese chemical company Shin-Etsu.
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