Minnesota semiconductor manufacturer awarded nearly $200 million in state, federal funding for expansion
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Updated: 4:00 p.m.
Bloomington’s Polar Semiconductor is beginning a $525 million expansion that it says will double its output and create 160 new jobs.
Minnesota Gov. Tim Walz and federal officials announced Monday that the facility is receiving up to $120 million in federal funding from the U.S. CHIPS (Creating Helpful Incentives to Produce Semiconductors) and Science Act.
It’s the first Minnesota award from the law, which President Joe Biden enacted in 2022 to support U.S. semiconductor research and production. It came after the pandemic sparked a chip shortage in 2020, which backed up supply chains for computers, cars, and appliances.
Walz and several other state and federal officials joined Polar staff at the facility on Monday to announce the funding.
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“This facility and the folks who are here embody the best of what Minnesota has to offer: forward leaning, visionary, and making contributions that will not only benefit Bloomington, or this country, but globally,” Walz said.
Semiconductor chips are crucial for technology like cars, defense systems and electrical grids. Officials say expanding semiconductor production in the U.S. will reduce the supply chain’s dependency on foreign manufacturers.
U.S. Sen. Amy Klobuchar said the impact will be broader than just Bloomington or Minnesota.
“This is about jobs, yes, but it's also about our supply chains. It's about our future. It's about our national security,” the Minnesota Democrat said.
Polar is getting another $75 million in state funding for the project, and has secured private funding as well. Polar staff say that funding will allow the company to reach its goal of doubling output within two years.
“We are very pleased to announce this historic investment in Minnesota semiconductor manufacturing,” Polar president Surya Iyer said in the announcement. “Our expanded manufacturing facility will allow us to increase capacity and branch into innovative technologies to serve new customers and markets.”
In Minnesota, semiconductor production is a fast-growing industry; the state’s more than 150 semiconductor manufacturers added nearly 2,000 jobs over the last two years.