Consultants Forum Advertise
Subscribe
Close

  • Free for qualified executives and consultants to industry

  • Receive quarterly issues of Area Development Magazine and special market report and directory issues

Subscribe Now
Renew

Area Development - Site Selection, Facility Planning and Workforce Development

Polar Semiconductor Expands Bloomington, Minnesota, Manufacturing Operations

05/16/2024
Polar Semiconductor, a manufacturer specializing in sensor, power, and high-voltage semiconductors, plans to expand manufacturing operations in Bloomington, Minnesota. The $525 million project is expected to create 160 jobs.

The investment will expand and modernize the company’s existing facility with new automation and AI capabilities and 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.

“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 has signed a non-binding preliminary memorandum of terms with the Department of Commerce, under which it would 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.

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, enabling Polar to transition to a U.S.-owned merchant foundry. Polar plans to claim the Department of the Treasury’s Investment Tax Credit, which is expected to be up to 25% of qualified capital expenditures.

“The Minnesota Forward Fund is one of the ways the Walz-Flanagan Administration is supporting innovative companies like Polar Semiconductor that are helping build Minnesota’s cutting-edge economy,” noted Minnestoa DEED Commissioner Matt Varilek. “The number of semiconductor companies in Minnesota is growing, and they’re creating hundreds of new, high-paying jobs every year. I appreciate the Commerce Department’s support as we make this innovative industry even stronger.”

Polar Semiconductor focuses on fabricating power semiconductor devices and sensors that serve automotive, consumer, and industrial markets. The company's semiconductor manufacturing facilities operate with automation systems to manufacture Integrated Circuit (BCD, BiCMOS) and discrete (MOSFET, IGBT) 8-inch silicon wafers for the power and sensor markets.

“As a key leader in the Minnesota CHIPS Coalition, Polar Semiconductor is accelerating the growth of Minnesota’s existing semiconductor and microelectronics industry with their investment in Bloomington,” added Peter Frosch, President and CEO of the GREATER MSP Partnership. “Together with Polar and more than 70 organizations across industry, government, academia, and community, we have a shared ambition to double the size of the semiconductor and microelectronics industry in Minnesota by adding 10,000 more great jobs. The State of Minnesota’s $250 million match funds for CHIPS, along with federal grants, makes us ready to scale the industry here in Minnesota.”

Exclusive Research