Company will increase capacity and branch into innovative technologies to serve new customers and markets.
Expansion will be funded by $75 million of state investments and $120 million from the Biden administration's Chips and Science Act.
Expected to double monthly output and add another 160 jobs.
Governor Tim Walz announced a $525 million expansion in semiconductor manufacturing at Polar Semiconductor in Bloomington, Minnesota.
Polar Semiconductor produces high-voltage semiconductors for auto, commercial and industrial uses at the Bloomington facility with over 500 employees.
Sens. Amy Klobuchar, Tina Smith, Bloomington Mayor Tim Busse and Arati Prabhakar attended the announcement.
On Monday, Governor Tim Walz and other state leaders announced a $525 million expansion in semiconductor manufacturing in Minnesota. The expansion at Polar Semiconductor in Bloomington will be funded by $75 million of state investments, as well as $120 million from the Biden administration’s Chips and Science Act. According to Walz’s office, Polar produces high-voltage semiconductors for auto, commercial and industrial uses at the Bloomington facility, which currently has more than 500 employees. With the expansion, the company is expected to double its monthly output and add another 160 jobs, officials say. In addition to Walz, Sens. Amy Klobuchar and Tina Smith, along with Bloomington Mayor Tim Busse and Arati Prabhakar, the director of the White House’s Office of Science and Technology Policy, were among those who attended Monday’s announcement. Surya Iyer, the president and COO of Polar Semiconductor, said that the company is very pleased with the announcement and that it will allow them to increase capacity and branch into innovative technologies to serve new customers and markets. The company 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 their long-term partners, Sanken Electric and Allegro MicroSystems.
Governor Tim Walz and other state leaders announced a $525 million expansion in semiconductor manufacturing in Minnesota.
Polar Semiconductor produces high-voltage semiconductors for auto, commercial and industrial uses at the Bloomington facility, which currently has over 500 employees.
Polar Semiconductor received significant equity investments from Niobrara Capital and Prysm Capital, allowing the company to become U.S.-owned.
The Biden administration announced on Monday that they will provide up to $120 million in grants to Polar Semiconductor to help the company expand its chip manufacturing facility in Minnesota.
Polar Semiconductor produces chips that are critical for cars, defense systems and electrical grids.
The grant will help Polar upgrade technology and double production capacity at its facility within two years.
Scaling up domestic chip production is a major component of President Biden’s economic policy agenda.
Polar Semiconductor will receive up to $120 million in federal funds from the CHIPS and Science Act program for expansion and upgrade of its Bloomington facility.
Polar Semiconductor started planning its expansion project in late 2020 but went big with the CHIPS Act.
U.S.-based private equity investors Niobrara Capital and Prysm Capital will become the majority owners of Polar Semiconductor after the CHIPS investment.
The Biden Administration aims to allow Polar to become a US-based, independent foundry.
