The United States Department of Commerce announced on Tuesday that it is awarding Polar Semiconductor LLC up to $123 million in direct funding for the modernization and expansion of its chip plant in Minnesota. The funds represent the first award under the CHIPS Act's incentive for semiconductor manufacturers. Polar announced the project in May, estimating it will cost $525 million in total. It is expected to double the production capacity of 200mm semiconductor wafers to nearly 40,000 per month, add new automation and AI capabilities, and create over 160 jobs.
"The Biden-Harris Administration’s investment in Polar will create a new U.S.-owned foundry for sensor and power semiconductors and modernize and expand Polar’s facilities in Minnesota, strengthening our national and economic security, bolstering our supply chains, and creating quality jobs," Secretary of Commerce Gina Raimondo said.
