Polar Semiconductor will receive $120 million in proposed direct funding as part of the U.S. CHIPS and Science Act and a $75 million investment from the State of Minnesota expects to expand its manufacturing in Minnesota. In addition, Polar has entered into a definitive agreement pursuant to which Niobrara Capital and Prysm Capital are leading an equity investment of $175 million
Overall, the company said it plans to invest approximately $525 million, including these funds, in the expansion of the facility over the next two years, enabling it to become a U.S.-owned merchant foundry.
Through these investments, Polar expects to:
- Double its current U.S. production capacity of 200mm semiconductor wafers, increasing production from approximately 20,000 wafers per month to nearly 40,000 wafers per month; Expand and modernize its facility with new automation and AI capabilities to become globally competitive through economies of scale;
- Better serve customers in automotive, aerospace and defense, optoelectronics, MEMS, and medical devices in the U.S. with cutting-edge semiconductor products; and
- Create over 160 new jobs to further strengthen Polar’s support of its community.
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 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, 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 U.S.-owned, and for the continued support of our long-term partners, Sanken Electric and Allegro MicroSystems.”
