Polar Semiconductor looks to double capacity in Minnesota
US-based semiconductor manufacturer Polar Semiconductor has completed its sale to Niobrara Capital and Prysm Capital. The USD 175 million in equity financing has been closed to convert Polar to a US-owned merchant foundry and fund expansion of its Bloomington, Minnesota manufacturing facility.
In total, Polar expects to invest approximately USD 525 million in the expansion of the facility over the next two years and branch into new markets.
Polar will also receive up to USD 123 million in direct funding as part of the US Chips and Science Act, and USD 75 million in incentives as part of the Minnesota Forward Fund. Polar says in a press release that it also plans to claim the Department of the Treasury’s Investment Tax Credit, which is expected to be up to 25% of qualified capital expenditures.
Through these investments, Polar plans to double production capacity, ramping up from approximately 20,000 wafers per month to nearly 40,000 wafers per month. The company will upgrade and modernise its facility to become globally competitive through economies of scale and also create 160+ new jobs.
“I signed the CHIPS and Science Act to revitalize American leadership in semiconductors, strengthen our supply chains, protect our national security, and advance American competitiveness. And over the last three and a half years, we have done just that, catalyzing over USD 400 billion in private sector investments in semiconductors and electronics that are creating over 115,000 construction and manufacturing jobs. This year alone, the United States is on pace to see more investment in electronics manufacturing construction than it did over the last 24 years combined, said President Joe Biden in a press release.
The president continues to say that the CHIPS Incentives award to Polar Semiconductor marks the next phase of the implementation of the CHIPS and Science Act, and demonstrates how the country will continue to deliver on the Investing in America agenda.
“Polar and its employees are excited to embark on our transformative project. We welcome new customers and partnerships, and as a domestic US-owned sensor and advanced power semiconductor merchant foundry, we will support technology and design innovation, protect intellectual property, facilitate onshoring and technology transfers, and provide efficient low- to high-volume manufacturing with world-class quality. Through our collaborative and sustained workforce development efforts, we expect to support customers with highly skilled employees today and into the future,” says Surya Iyer, President and COO of Polar Semiconductor.
