Polar Semiconductor To Invest $525M In Minnesota Expansion
Polar Semiconductor will expand its Bloomington, MN manufacturing facility, with $120M in support from the U.S. CHIPS and Science Act, $75M from the Minnesota Forward Fund.
Polar Semiconductor will invest $525 million to expand its Bloomington, MN manufacturing facility. The company will leverage $120 million in direct funding as part of the U.S. CHIPS and Science Act, and a $75 million investment from the Minnesota Department of Employment and Economic Development’s (DEED) Minnesota Forward Fund. The expansion will create more than 160 new jobs.
Polar’s federal funding is the first award in Minnesota from the CHIPS and Science Act, as well as the first award from the Minnesota Forward Fund. The expansion and modernization project will enable Polar to double its U.S. production capacity of sensor and power chips within two years. It will also bring in more U.S. private capital, which will transform Polar from a majority foreign-owned in-house manufacturer to a majority U.S.-owned commercial foundry, expanding opportunities for U.S. chip designers to innovate and produce technologies domestically.
(Photo: Minnesota Department of Employment and Economic Development / Facebook)
“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.”
— Surya Iyer, President/COO, Polar Semiconductor
“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,” said Surya Iyer, President and COO of Polar Semiconductor.
“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, DEED, and the City of Bloomington, Minnesota, throughout this process,” Iyer continued. “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.”
Governor Tim Walz signed the Minnesota Forward Fund into law last year to invest $400 million in business growth. It also provides matching funds for companies seeking federal resources like CHIPS Act funding.
“As a top state for innovation in manufacturing, education, and workforce training, Minnesota has an established reputation as a leader in the growing high-tech economy,” said Gov. Walz. “We have been consistent and creative in our support for companies like Polar Semiconductor that want to establish and grow their businesses here in Minnesota. We’re grateful to the Commerce Department for its commitment to Minnesota’s future and its partnership with our state.”
“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,” said U.S. Secretary of Commerce Gina Raimondo. “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.”
(Source: Minnesota DEED / Facebook)
Polar has made climate and environmental responsibility a top priority in its operations. Recently, Polar transitioned its semiconductor fab operation to rely entirely on clean and renewable energy sources to fulfill its electric power needs. Polar also highly prioritizes water conservation efforts including reclamation of wastewater for manufacturing processes and water collection for irrigation.
A Semiconductor Leader In Minnesota
More than 150 semiconductor manufacturing companies operate in Minnesota, a figure that grew by 13.5% between 2021 and 2023. Semiconductor and other electronic component manufacturers employ 10,800 workers in Minnesota with average wages around $85,000 per year, 18.2% above the average across all industries. These companies added nearly 1,900 jobs in Minnesota over the last two years.
“The Minnesota Forward Fund is one of the ways the Walz-Flanagan Administration supports innovative companies like Polar Semiconductor that are helping build Minnesota’s cutting-edge economy,” said DEED Commissioner Matt Varilek. “Minnesota is home to a growing number of semiconductor companies that are creating hundreds of new, high-paying jobs every year. I appreciate the U.S. Commerce Department’s support as we make this innovative industry even stronger.”
Polar Semiconductor is a leader of the Minnesota CHIPS Coalition, formed by the 15-county GREATER Minneapolis–Saint Paul Partnership in response to the CHIPS and Science Act. The coalition is made up of more than 70 organizations, including manufacturers, supply-chain partners, education and training providers, labor organizations and state and local governments.
“The federal government’s significant investment in Polar Semiconductor is key to building the digital infrastructure in the Greater MSP region to meet the needs of a diversity of industries, including medical device, consumer electronics, automobiles, data centers, and space and military systems, and fuel the nation’s next economy,” said Peter Frosch, President and CEO of the GREATER MSP Partnership. “Thanks to dedicated state matching funds through the Minnesota Forward Fund, the region’s semiconductor industry is ready to scale. Federal investments like this one are key to the growth of our regional and state economy, driving technology development and building prosperity for all Minnesotans.”
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The following state and federal support helped secure Polar Semiconductor’s expansion project:
Last April, DEED awarded Polar $4.8 million in funding from the Minnesota Investment Fund and Job Creation Fund to support the company’s expansion. It has also received nearly $415,000 in Minnesota Jobs Skills Partnership awards from DEED to development training programs for semiconductor workers.
In June, Secretary Raimondo joined a roundtable in Bloomington with the Minnesota CHIPS Coalition. The roundtable focused on opportunities to grow the semiconductor industry in Minnesota.
In September, Gov. Walz, Commissioner Varilek, and members of the delegation on the Governor’s Business Development Mission to Japan met with executives from Sanken Electric. The discussion focused on the company’s investments in Minnesota and the outlook for high-tech manufacturing in the state.
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