Polar Semiconductor (Minnesota)

Project Summary

The U.S. Department of Commerce awarded Polar Semiconductor (Polar) up to $123 million in total direct funding under the CHIPS and Science Act to expand and modernize the company’s manufacturing facility in Bloomington, Minnesota, which is expected to almost double its U.S. production capacity of sensor and power chips within two years. The CHIPS incentive award catalyzes an investment of more than $525 million from private, state, and federal sources to 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. Through Polar’s semiconductor manufacturing operations, the investment is expected to create over 160 manufacturing and construction jobs in Minnesota.

Economic and National Security Impact

Shortages of power and sensor chips were among the most acute bottlenecks during the COVID-19 pandemic, disrupting critical industries, including automotive, healthcare, aerospace, and defense. Because of the Biden-Harris Administration’s investment in Polar, the U.S. is expected to have an expanded and more stable domestic supply of these essential semiconductor technologies, bolstering U.S. supply chain resilience as a result.

The CHIPS investment is also catalyzing U.S. private capital to transition Polar from a majority foreign-owned, in-house semiconductor manufacturer to a majority U.S.-owned, commercial foundry, enabling the company to expand its U.S. customer base. The collaborative funding approach involving the company, private investors, state and local entities, and federal support would not have been possible without the CHIPS and Science Act. This approach will help protect intellectual property (IP) developed at Polar and encourage innovation among U.S. fabless power semiconductor companies. Moreover, establishing commercial foundry capacity for sensor and power semiconductor technologies in the U.S. will help enable the U.S. defense industrial base to securely manufacture chips used in mission critical programs.

As a result of Biden-Harris Administration’s investment, Polar is expected to almost double its U.S. production capacity of sensor and power semiconductors within two years, from roughly 20,000 to roughly 40,000 wafer starts per month. The investment will also support the addition of advanced technologies for high performing compound semiconductors, cutting-edge sensors, and backend processing that will help the company manufacture the next generation of semiconductors.

Other

Polar has committed to use commercially reasonable efforts to allocate 7% of its total U.S.-based revenue each year to R&D that is conducted in the United States for a period of 5 years and will support R&D and other technology advancement efforts through the National Semiconductor Technology Center (NSTC) and the Department of Defense’s Microelectronic Commons program.

Progress Photos

Credit: Polar Semiconductor

 

Credit: Polar Semiconductor

 

Credit: Polar Semiconductor

Credit: Polar Semiconductor

 

Credit: Polar Semiconductor

 

Credit: Polar Semiconductor