Talent tops the numerous lures of Michigan
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, 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.”
— Gov. Gretchen Whitmer
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 U.S. 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.”
Ann Arbor is home to the University of Michigan, which is one of the nation’s leading institutions for semiconductor research
Photo: Getty Images
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.”
