The U.S. Department of Commerce announced its first award under the CHIPS Incentives Program’s Funding Opportunity for Commercial Fabrication Facilities of up to $123 million in direct funding to Polar Semiconductor.
The award will expand and modernize the company’s manufacturing facility in Bloomington, Minnesota. The department will distribute the funds based on Polar’s completion of project milestones.
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“Today’s announcement that the Department of Commerce has finalized the first commercial CHIPS Incentives award with Polar Semiconductor marks the next phase of the implementation of the CHIPS and Science Act, and demonstrates how we continue to deliver on the Investing in America agenda,” President Joe Biden said. “Polar’s new facility will also be completed under a Project Labor Agreement to support its construction workforce, creating good-quality union jobs in Bloomington.”
The Biden-Harris Administration’s investment will support Polar’s efforts to almost double its U.S. production capacity of sensor and power chips within two years. This award catalyzes a total investment of more than $525 million from private, state, and federal sources to transform Polar from a majority foreign-owned in-house manufacturer to a majority U.S.-owned commercial foundry.
The investment is expected to create over 160 manufacturing and construction jobs in Minnesota.
The award follows the previously signed preliminary memorandum of terms and the completion of the Department’s due diligence.
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