Wacker Chemie AG, a chemical company based in Germany, will invest US$1 billion to build a factory in Cleveland, Tennessee, according to the Tennessee governor's office. The company will create 500 new jobs at the facility, which will produce hyperpure polycrystalline silicon, a product used to make solar panels and semiconductors. "We expect polysilicon demand from the solar and semiconductor industries to further increase in the coming years," says Ingomar Kovar, president of Wacker Chemical Corporation, a U.S. subsidiary. "Purchasing this site is an essential prerequisite to quickly build up additional production capabilities outside the euro zone in line with projected market trends and growth in demand." Wacker Chemie AG is the world's second-largest producer of hyperpure polycrystalline silicon. The Associated Press reports that Bradley County, Tennessee, government officials approved a $5 million incentives package last December for the company.