The investment plan is expected to double Polar’s domestic semiconductor manufacturing capacity and create more than160 new jobs in Minnesota.
BLOOMINGTON, Minn.—Polar Semiconductor, reported to be the only U.S.-based manufacturer specializing in sensor, power, and high-voltage semiconductors, is planning to expand its Bloomington manufacturing facility and “branch into innovative technologies to serve new customers and markets,” the company said in a release.
Polar said it expects to invest approximately $525 million in the expansion of the facility over the next two years, subject to its receipt of appropriate approvals and federal, state, and local incentives. The company has signed a non-binding preliminary memorandum of terms with the U.S. Department of Commerce, under which it would receive $120 million in proposed direct funding as a result of the U.S. CHIPS and Science Act, and a $75 million investment from the State of Minnesota.
The company also said 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 percent of qualified capital expenditures, the company said in the release.
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. The company plans to expand and modernize its facility with new automation and AI capabilities to become globally competitive through economies of scale.
In addition, Polar Semiconductor expects the investments will enable it to better serve U.S. customers with cutting-edge semiconductor products for automotive, aerospace and defense, optoelectronics, MEMS, and medical devices. The company said it expects to create more than 160 new jobs to further strengthen its support of its community.
“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 Polar Semiconductor President and Chief Operating Officer Surya Iyer, in the release. “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.”
In the release, Chip Schorr, founder and managing partner of Niobrara Capital, said, “Polar is positioned to enable many of America’s most critical industries, such as aerospace and defense, automotive, and medical, to have a dedicated, high performance, low cost, onshore source of power semiconductors and sensors. We are pleased to be partnering with the company to support its growth and the growth of U.S. technology manufacturing leadership.”