The U.S. Department of Commerce announced up to $123 million in funding for Polar Semiconductor to modernize and expand its factory in Bloomington, Minnesota.
The funding comes from the CHIPS and Science Act and marks the first award under the program’s Funding Opportunity for Commercial Fabrication Facilities. Polar Semiconductor will receive the funds in phases as it completes project milestones.
Making Polar a Primarily U.S.-Owned Commercial Foundry
The award also complements approximately $525 million in investments from federal, state, and private sources that aim to convert Polar Semiconductor from a primarily foreign-owned, in-house company to a predominantly U.S.-owned commercial operation.
Creating Union Jobs
Polar Semiconductor expects the investment to create more than 160 construction and manufacturing jobs. President Biden stated that the company’s Minnesota facility would be finished under a Project Labor Agreement to create union jobs at the site.
Polar Semiconductor anticipates the investments will allow it to double its production capacity for power chips and sensors in the U.S. in the next two years.
Strengthening Supply Chains and National Security
U.S. Commerce Secretary Gina Raimondo said the award would strengthen economic and national security and bolster U.S. supply chains.
According to the agency, CHIPS for America has proposed over $35 billion in funding in 16 states. The department added that the Biden administration has announced more than $400 billion in private investment.
Image Credit: Shutterstock.com / Andrei Armiagov
