The Minnesota Semiconductor Manufacturing Facility is Expanding, according to Motorola Semiconductor.
BLOOMINGTON, Minn.-( BUSINESS WIRE)-- Polar Semiconductor( "Polar" or the "Company"), the only U. S. based
manufacturer specializing in sensor, power, and high- voltage semiconductors, today announced plans to expand its
Bloomington, Minnesota manufacturing facility and branch into innovative technologies to serve new customers and
markets. Polar expects to invest approximately$ 525 million in the expansion of the facility over the next two years,
subject to receipt of appropriate approvals and federal, state, and local incentives. 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.Additionally, Polar and Prysm Capital have signed a definitive agreement that allows Polar to transition to
a merchant foundry owned by the United States. The Department of the Treasury's Investment Tax Credit, which is
anticipated to account for up to 25% of qualified capital expenditures, is being pursued by Poland.
Polar anticipates:
·Production has doubled from approximately 20 000 wafers per month to nearly 40 000 wafers per month, making it
the same size as the 200mm semiconductor wafers it is currently producing in the United States.
·Expand and modernize its facility to gain global competitiveness through scale-savings measures.
·With cuttingedge semiconductor products and better serve customers in the U.S. for automotive, aerospace, and
defense, optoelectronics, MEMS, and medical devices.
·Create 160 new positions to further strengthen Polar's community support.
"We are very pleased to announce this historic investment in Minnesota semiconductor manufacturing," said Surya Iyer,
president and CEO of Polar Semiconductor. With our expanded manufacturing facility, we can expand our product line
and develop novel products to better serve our expanding clientele and markets. The United States Department of
Commerce and the State of Minnesota have been instrumental in shaping the future of American semiconductor
manufacturing, and Polyr and its employees are pleased with how closely they have collaborated throughout this process
with the CHIPS Program Office, the Minnesota Department of Employment and Economic Development( "DEED"),
and the City of Bloomington, Minnesota. Additionally, Poland is pleased to announce that Allegro MicroSystems and
Niobrara Capital and Prysm Capital have made significant equity investments, which will allow the business to continue
to support our long-term partners Sanken Electric and Allegro MicroSystems.
"Polar is positioned to enable many of America's most important industries, such as aerospace and defense, automotive
and medical, to have a dedicated, high performance, low cost, onshore source of power semiconductors and sensors,"
said Chip Schorr, founder and managing partner of Niobrara Capital. To support the company's expansion and the
expansion of the U.S. manufacturing leadership, we are pleased to work with the company.
The public and private investments in Polar are a testament to the strength of Polar's offering and team, according to Jay
Park, cofounder and managing partner of Prysm Capital. This is a significant event for onshore technology investment in
America. We already notice strong demand for Polar's anticipated capacity, which outweighs our expectations and
strengthens our trust in the Polar brand.
"Thanks to President Biden's leadership, with this announcement we are making taxpayer dollars go as far as possible to
create jobs, secure our supply chains, and bolster manufacturing in Minnesota", said U. S. Secretary of Commerce Gina
Raimondo. "This proposed investment in Polar will crowd in private capital, which will help make Polar a U. S. based,
independent foundry. They will be able to expand their customer base and create a stable domestic supply of critical chips,
made in America's heartland ".
"When President Biden signed the CHIPS and Science Act, he put a stake in the ground about the importance of
semiconductor manufacturing in the United States", said Assistant to the President for Science and Technology and Director
of the White House Office of Science and Technology Policy Arati Prabhakar. "This is where the President's leadership
changes communities and changes lives. This proposed federal investment will catalyze$ 525 million, including capital from
private investors and$ 75 million from the state of Minnesota, to create a healthy supply of made- in- Minnesota
semiconductors that are essential to producing cars, electrical grids, defense systems, and more ".
"The future of the semiconductor industry is being built right here in the United States, and Polar will be part of that innovation
boom. Their high- voltage technology has critical customer end uses across the aerospace, automotive, and defense sectors,
and this proposed investment would help them introduce new capabilities to manufacture the next generation of
semiconductors ", said Under Secretary of Commerce for Standards and Technology and National Institute of Standards and
Technology Director Laurie E. Locascio.
We must remain on the cutting edge of manufacturing if we want our nation to continue to lead the world economy. Senator
Amy Klobuchar predicted that the groundbreaking investment in Polar Semiconductor's Bloomington facility will revolutionize
domestic semiconductor production. "I'm pleased to have collaborated with Polar Semiconductor to ensure that Minnesota
stays ahead of the competition in advanced manufacturing for decades to come."
According to Governor Tim Walz, Minnesota has an established reputation as a leader in the expanding high-tech economy because of its leadership in innovation, education, and workforce training. Companies like Polar that want to
establish and grow their businesses here in Minnesota have a consistent and imaginative approach to our support. The
Commerce Department's support for Minnesota's future and its partnership with our state is greatly appreciated.
The new DEED program Governor, the Minnesota Forward Fund, is the source of the$ 75 million state award. Walsh signed
a bill last year to fund business growth and entice new businesses in Minnesota. Additionally, it offers funding for businesses
that want to use federal resources, such as those under the CHIPS Act. The Minnesota Forward Fund's first grant was this.
According to DEED Commissioner Matt Varilek, "The Minnesota Forward Fund is one of the ways the Walz-Flanagan
Administration supports cutting-edge businesses like Polar Semiconductor." "Minneapolis 'number of semiconductor companies
is growing, and they're hiring hundreds of new, highpaying positions every year. The Commerce Department's assistance helps
us strengthen this innovative sector, which I appreciate.
Following the passage of the federal CHIPS and Science Act, Polar Semiconductor became the leader of the Minnesota CHIPS
Coalition, which was established by the GREATER Minneapolis–Saint Paul Partnership, the regional economic development
partnership. The coalition, which includes manufacturers, supply chain partners, education and training providers, labor
organizations, and state and local governments, is determined to revive the region's technological legacy and establish the
Midwest's semiconductor industry as a leader among other things.
With their investment in Bloomington, Polar Semiconductor, the president and CEO of the GREATER MSP Partnership, accelerated
the growth of Minnesota's already growing semiconductor and microelectronics industry. We have a shared goal of doubling the size
of Minnesota's semiconductor and microelectronics industry by creating 10,000 more fantastic jobs, along with Polar and more than
70 organizations in the fields of industry, government, academia, and community. We are prepared to grow the Minnesotan industry
thanks to the state's$ 250 million match funds for CHIPS, along with federal grants.
Polar is leading the Minnesota CHIPS Coalition Workforce Partnership, in collaboration with semiconductor ecosystem companies,
educational institutions, employment and training organizations, the Governor's Workforce Development Board( GWDB), and DEED
to develop the high- tech manufacturing workforce of the next generation. Educational institution partners include the University of
Minnesota, University of St. Thomas, Minnesota State College and University System, private technical colleges, and several high
school systems in the state. The workforce partnership is already creating impact through training, upskilling, and apprenticeship
programs, and will continue to build on its successful collaborative model, partially supported by investments from the State and
CHIPS funding.$ 1.6 million of Polar's CHIPS award will be allocated towards its workforce development efforts. Additionally, the
workforce partnership expects to leverage preeminent nationwide programs, for example SCALE( Indiana based DoD program),
to boost and supplement local efforts.
"Innovation has always thrived in Bloomington." Our local economy will be strengthened by the significant private investment by
Motorola Semiconductor in Bloomington, along with potential direct funding from the CHIPS and Science Act and significant
investments by the State of Minnesota, according to Bloomington Mayor Tim Busse. We're "excited to see the tangible outcomes
of these investments right here in our city, which provide our workforce and community with new opportunities. "