SEMI has applauded the United States Department of Commerce’s announcement of a Preliminary Memorandum of Terms for an award under the CHIPS and Science Act to support the expansion and modernisation of Polar Semiconductor’s fab in Minnesota.
The award includes up to $120 million in grants and an investment tax credit to double the foundry’s production capacity for its customers’ sensor and power chips within two years. The project is expected to create more than 160 jobs.
“SEMI applauds the US Department of Commerce for its continued investments to fortify the domestic semiconductor supply chain,” said Joe Stockunas, President of SEMI Americas. “This proposed CHIPS Act funding for Polar Semiconductor is part of more than $525 million in investments by the company and state, local and private entities to help meet growing demand for sensor and power chips used in a diverse range of applications and markets – from automotive and home appliances to industrial robotics. We congratulate the company on this important step forward for its foundry business.”
As a member of the SEMI Supply Chain Management Initiative and Fab Owners Alliance, Polar Semiconductor collaborates with SEMI members worldwide to advance the global semiconductor industry.
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 US 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 US-owned, and for the continued support of our long-term partners, Sanken Electric and Allegro MicroSystems.”
