Polar Semiconductor set to receive $120m government grant
The US company says the funding will help it to double its production capacity of sensor and power chips within two years.
The source of the funding is, of course, the Biden administration's USD 52.7 billion Chips and Science subsidy program, which is trying to bolster the US's chip supply chain.
Polar Semiconductor is the ideal recipient. The firm is located in Bloomington, Minnesota, and has been making automotive-grade analog and power semiconductor components for decades. In fact, this grant follows corporate changes made by Polar to boost its US-made credentials. The firm was until recently 70% owned by Japan-based Sanken Electric. However, Last month two US private equity firms – Niobrara Capital and Prysm Capital – revealed a plan to invest USD 175 million to capture around 59% of Polar. As a result, Sanken's holding will drop to around 30%.
Laurie Locascio, US Under Secretary of Commerce, said Polar's "technology plays a critical role in high-voltage applications across the aerospace, automotive, and defence sectors and this proposed investment would enable new capabilities to manufacture the next generation of semiconductors."
Polar is expected to use the funds to expand its plant in Minnesota, and thereby double its production capacity of sensor and power chips by 2026. The state of Minnesota is also contributing USD 75 million to the USD 525 million project.
