Polar Semiconductor secures $123 m US funding for fab unit in Minnesota
25 Sep 2024
The US Department of Commerce on Tuesday announced the award of $123 million in direct funding to Polar Semiconductor, its first under the CHIPS incentives programme, for commercial fabrication of high-voltage semiconductor chips in the US.
Polar Semiconductor, a contract manufacturer of cutting-edge tools that deliver high-voltage semiconductors, is setting up an independent American foundry at Bloomington, Minnesota, which would nearly double US production capacity of sensor and power chips.
The funds will be made available to Polar Semiconductor upon completion of certain stages of the project as per the terms of the preliminary memorandum of understanding and after due diligence by the commerce department.
President Joe Biden signed the CHIPS and Science Act with the aim of retrieving US competitiveness in semiconductor manufacturing, while ensuring supplies and protecting America’s national security interests.
The tiny semiconductor chips today power everything from smartphones to cars to satellites and weapon systems.
The award will help catalyse a total investment of more than $525 million of private, state, and federal funds while also transforming Polar to a majority US-owned commercial foundry.
Polar said it is close to securing significant equity investment from Niobrara Capital and Prysm Capital as well.
The administration’s investment in Polaris is expected to create over 160 manufacturing and construction jobs in Minnesota.
According to President Joe Biden, the CHIPS incentive scheme has helped generate $400 billion in private sector investment in semiconductor manufacturing over the last three and a half years. It will also help create over 115,000 construction and manufacturing jobs in the US
