The U.S. Department of Commerce has announced a significant investment of up to $123 million through its CHIPS Incentives Program, marking the first award aimed at enhancing commercial fabrication facilities. This funding will facilitate the expansion and modernization of Polar Semiconductor’s manufacturing plant in Bloomington, Minnesota.
President Joe Biden highlighted the importance of this award, stating, “Today’s announcement of the CHIPS Incentives award to Polar Semiconductor signifies a pivotal step in the implementation of the CHIPS and Science Act, reinforcing our commitment to the Investing in America agenda.” He added that the new facility will be constructed under a Project Labor Agreement, ensuring the creation of quality union jobs in the local area.
This financial backing from the Biden-Harris Administration is poised to nearly double Polar’s U.S. production capacity for sensor and power chips within the next two years. The award catalyzes a broader investment exceeding $525 million from various sources, transitioning Polar from being primarily a foreign-owned in-house manufacturer to a predominantly U.S.-owned commercial foundry.
Additionally, the initiative is expected to generate over 160 jobs in manufacturing and construction across Minnesota.
The award follows the successful completion of due diligence and a preliminary memorandum of terms that were previously signed.
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