Polar Semiconductor has announced plans to expand its manufacturing operations in Bloomington, Minnesota. The company, which focuses on sensor, power, and high-voltage semiconductor manufacturing, will invest $525 million into the project, which will help Polar branch into new and innovative technologies. The expansion is expected to allow Polar to increase its production of 200mm semiconductor wafers to approximately 40,000 wafers per month. Additionally, the company will modernize its facility with new automation and AI capabilities and create 160 new jobs for the surrounding area.
To help support the project, Polar will receive $120 million in funding from the U.S. Department of Commerce as part of the U.S. CHIPS and Science Act. In addition, the company will receive a $75 million investment from the State of Minnesota, a $175 million investment from Niobrara Capital and Prysm Capital, and tax credits from the U.S. Treasury Department, which can be up to 25% of qualified capital expenditures.
What people are saying
In a recent quote, Surya Iyer, President and COO of Polar Semiconductor, said, “We are very pleased to announce this historic investment in Minnesota semiconductor manufacturing. Our expanded manufacturing facility will allow us to increase capacity and branch into innovative technologies to serve new customers and markets. Polar and its employees are grateful to the U.S. Department of Commerce and the State of Minnesota for their commitment to the future of American semiconductor manufacturing and appreciate the strong collaboration with the CHIPS Program Office, Minnesota Department of Employment and Economic Development (“DEED”), and the City of Bloomington, Minnesota, throughout this process. Polar is also pleased to welcome a significant equity investment from Niobrara Capital and Prysm Capital, which will allow the Company to become U.S.-owned, and for the continued support of our long-term partners, Sanken Electric and Allegro MicroSystems.”
U.S. Secretary of Commerce Gina Raimondo added, “Thanks to President Biden’s leadership, with this announcement we are making taxpayer dollars go as far as possible to create jobs, secure our supply chains, and bolster manufacturing in Minnesota. This proposed investment in Polar will crowd in private capital, which will help make Polar a U.S.-based, independent foundry. They will be able to expand their customer base and create a stable domestic supply of critical chips, made in America’s heartland.”
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