HEMLOCK SEMICONDUCTOR ANNOUNCES LAYOFFS, REDUCES PRODUCTION

(The following is a reformatted version of a press release
issued by Hemlock Semiconductor Group and received via
electronic mail. The release was confirmed by the sender.) 
January 14, 2013 
Hemlock Semiconductor announces layoffs, reduces production as a
result of industry oversupply, international trade disputes 
Hemlock, Mich. - Hemlock Semiconductor Group announced today it
will lay off approximately 400 employees in Michigan and
Tennessee in the coming weeks in response to significant
oversupply in the polysilicon industry and the threat of
potential tariffs on its products sold into China. 
These actions will affect approximately 300 employees at Hemlock
Semiconductor’s Tennessee site and 100 at its Michigan site, as
the company evaluates the longer-term impact of these conditions
on its business.  Should market conditions persist, these
layoffs could become permanent. 
“This is a difficult but necessary decision to enable Hemlock
Semiconductor to navigate the volatility in the polysilicon and
solar industries,” said Andrew Tometich, president of Hemlock
Semiconductor.  “The unresolved trade disputes among the U.S.,
China and Europe are a major factor in Hemlock Semiconductor’s
actions as the threat of tariffs on U.S. polysilicon imported
into China has significantly decreased orders from China, which
is home to one of the largest markets for our products.” 
As a result of these decisions, Hemlock Semiconductor’s Michigan
site will continue to reduce production to align with current
customer demand.  The Tennessee facility, which is nearly
completed with its construction phase, will maintain a minimum
workforce focused on safely maintaining the site for eventual
production.   A number of factors will impact the exact timing
of the start-up of the facility, including customer demand and
resolution of the trade disputes. 
“Hemlock Semiconductor has been in business for 52 years and
remains a leading player in its industry.  As one of the
industry leaders we will manage through this period of extreme
volatility and uncertainty and will emerge as a group of
companies that will remain viable for the long-term,” said
Tometich. 
About Hemlock Semiconductor Group 
Hemlock Semiconductor Group (hscpoly.com) consists of several
joint venture companies owned by Dow Corning Corporation, Shin-Etsu Handotai and Mitsubishi Materials Corporation. Hemlock
Semiconductor is a leading provider of polycrystalline silicon
and other silicon-based products used in the manufacturing of
semiconductor devices and solar cells and modules. Hemlock
Semiconductor began its operations in 1961. 
Follow Hemlock Semiconductor Group on Twitter:
twitter.com/hscpoly 
About Dow Corning 
Dow Corning (dowcorning.com) provides performance-enhancing
solutions to serve the diverse needs of more than 25,000
customers worldwide. A global leader in silicones, silicon-based
technology and innovation, Dow Corning offers more than 7,000
products and services via the company’s Dow Corning® and
XIAMETER® brands. Dow Corning is equally owned by The Dow
Chemical Company and Corning, Incorporated. More than half of
Dow Corning’s annual sales are outside the United States. Dow
Corning’s global operations adhere to the American Chemistry
Council’s Responsible Care® initiative, a stringent set of
standards designed to advance the safe and secure management of
chemical products and processes. 
Follow Dow Corning on Twitter: twitter.com/dowcorning
Visit Dow Corning’s YouTube channel: youtube.com/dowcorningcorp 
(bjh) NY 
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