Polar Semiconductor, a leading U.S.-based manufacturer specializing in sensor, power, and high-voltage semiconductors, has unveiled plans to expand its manufacturing facility in Bloomington, Minnesota. The expansion, slated to occur over the next two years, aims to introduce innovative technologies and cater to new markets.
The company intends to invest approximately $525 million in the expansion project, subject to approval from relevant authorities and the receipt of federal, state, and local incentives. Polar has secured substantial financial backing, including a proposed $120 million direct funding from the U.S. Department of Commerce under the U.S. CHIPS and Science Act, a $75 million investment from the State of Minnesota, and a $175 million equity investment led by Niobrara Capital and Prysm Capital.
The expansion initiative encompasses several key objectives, including the doubling of Polar’s current U.S. production capacity of 200mm semiconductor wafers, facility modernization with new automation and AI capabilities, diversification of market offerings to better serve various sectors such as automotive, aerospace and defense, optoelectronics, MEMS, and medical devices, and the creation of over 160 new jobs to support the local community.
Surya Iyer, President and COO of Polar Semiconductor, expressed appreciation for the support received from government entities and stakeholders, emphasizing Polar’s commitment to innovation and growth through strategic partnerships and investments.
Government officials and industry leaders have welcomed the proposed investment, citing its potential to bolster American semiconductor manufacturing, strengthen domestic supply chains, and drive economic development in Minnesota and beyond.
