[ST. PAUL, MN] – Governor Tim Walz, the U.S. Department of Commerce, state and regional economic development officials and company leaders today announced Polar Semiconductor will invest $525 million to expand its Bloomington manufacturing facility, leveraging $120 million in direct funding as part of the U.S. CHIPS and Science Act and a $75 million investment from the Minnesota Forward Fund, a State of Minnesota initiative to fuel business expansion.

Polar's federal funding is the first award in Minnesota from the 2022 U.S. CHIPS and Science Act, a $53 billion initiative by President Biden to grow U.S. semiconductor manufacturing, research and development, and workforce.

Minnesota's $75 million investment comes from the Minnesota Forward Fund, a new Department of Employment and Economic Development (DEED) program Governor Walz signed into law last year to invest $400 million in business growth in Minnesota. It also provides matching funds for companies seeking federal resources like CHIPS Act funding. This is the Minnesota Forward Fund's first award.

"As a top state for innovation in manufacturing, education, and workforce training, Minnesota has an established reputation as a leader in the growing high-tech economy," said Governor Walz. "We have been consistent and creative in our support for companies like Polar Semiconductor that want to establish and grow their businesses here in Minnesota. We're grateful to the Commerce Department for its commitment to Minnesota's future and its partnership with our state."

"Minnesota continues to lead the way in business expansion. Through this expansion we are opening doors, bringing people to the state, and working towards our goal of making Minnesota the best state in the nation for kids," said Lieutenant Governor Flanagan. "This investment highlights DEED's commitment to supporting the growth and operation of businesses in Minnesota, and I am grateful for their work and our strong partnership with the Commerce Department. Together, we are ensuring high-growth, high-demand, good-paying jobs, and building a more prosperous Minnesota."

"Thanks to President Biden's leadership, with this announcement we are making taxpayer dollars go as far as possible to create jobs, secure our supply chains, and bolster manufacturing in Minnesota," said U.S. Secretary of Commerce Gina Raimondo. "This proposed investment in Polar will crowd in private capital, which will help make Polar a U.S.-based, independent foundry. They will be able to expand their customer base and create a stable domestic supply of critical chips, made in America's heartland."

"We are very pleased to announce this historic investment in Minnesota semiconductor manufacturing. Our expanded manufacturing facility will allow us to increase capacity and branch into innovative technologies to serve new customers and markets," Surya Iyer, President and COO of Polar Semiconductor, said. "Polar and its employees are grateful to the U.S. Department of Commerce and the State of Minnesota for their commitment to the future of American semiconductor manufacturing and appreciate the strong collaboration with the CHIPS Program Office, DEED, and the City of Bloomington, Minnesota, throughout this process. Polar is also pleased to welcome a significant equity investment from Niobrara Capital and Prysm Capital, which will allow the Company to become U.S.-owned, and for the continued support of our long-term partners, Sanken Electric and Allegro MicroSystems."

Polar produces high-voltage semiconductors for use in automotive, commercial and industrial applications at its 310,000-square-foot facility in Bloomington, employing 540 workers. The company produces around 20,000 wafer semiconductors per month. Polar's $525 million expansion will allow the company to expand the facility, which could double its monthly output and lead to 160 new jobs.

Expanding the semiconductor sector is a priority for both Minnesota and the U.S. as a whole. More domestic semiconductor manufacturing will help cement U.S. national security by reducing American dependency on foreign producers like China. Semiconductors are also a core component of the supply chain for high-tech industries like computing and clean energy, meaning the sector has strong growth potential in the years ahead.

"The Minnesota Forward Fund is one of the ways the Walz-Flanagan Administration supports innovative companies like Polar Semiconductor that are helping build Minnesota's cutting-edge economy," said DEED Commissioner Matt Varilek. "Minnesota is home to a growing number of semiconductor companies that are creating hundreds of new, high-paying jobs every year. I appreciate the U.S. Commerce Department's support as we make this innovative industry even stronger."

More than 150 semiconductor manufacturing companies operate in Minnesota, a figure that grew by 13.5% between 2021 and 2023. Semiconductor and other electronic component manufacturers employ 10,800 workers in Minnesota with average wages around $85,000 per year, which is 18.2% above the average across all industries. These companies added nearly 1,900 jobs in Minnesota from over the last two years, a massive 21.3% increase – more than four times as fast as the overall economy grew.

Polar Semiconductor is a leader of the Minnesota CHIPS Coalition, formed by the GREATER Minneapolis–Saint Paul Partnership, the economic development partnership for the 15-county region, in late 2022 after the passage of the CHIPS and Science Act. Composed of more than 70 organizations, including manufacturers, supply-chain partners, education and training providers, labor organizations and state and local governments, the coalition is determined to reinvigorate the region's legacy in technology and establish the Midwest's semiconductor industry as a national leader.

"The federal government's significant investment in Polar Semiconductor is key to building the digital infrastructure in the Greater MSP region to meet the needs of a diversity of industries, including medical device, consumer electronics, automobiles, data centers, and space and military systems, and fuel the nation's next economy," said Peter Frosch, President and CEO of the GREATER MSP Partnership. "Thanks to dedicated state matching funds through the Minnesota Forward Fund, the region's semiconductor industry is ready to scale. Federal investments like this one are key to the growth of our regional and state economy, driving technology development and building prosperity for all Minnesotans."

"Bloomington has always been a place where innovation thrives. Polar Semiconductor's significant private investment in expanding its facilities, with direct funding from the CHIPS and Science Act and a substantial investment by the State of Minnesota, will boost our local economy and will contribute to the growth and vibrancy of semiconductor manufacturing in Bloomington," said Bloomington Mayor Tim Busse. "We're excited to see the tangible benefits of these investments right here in our city, bringing jobs and new opportunities for our workforce and community."

Extensive state and federal support helped secure today's expansion announcement:

• Last April, DEED awarded Polar $4.8 million in funding from the Minnesota Investment Fund and Job Creation Fund to support the company's expansion. It has also received nearly $415,000 in Minnesota Jobs Skills Partnership awards from DEED to development training programs for semiconductor workers.
• In June, Secretary Raimondo joined a roundtable in Bloomington with the Minnesota CHIPS Coalition, which includes Polar and is led by GREATER MSP. The roundtable focused on opportunities to grow the semiconductor industry in Minnesota.
• In September, Governor Walz, Commissioner Varilek, and members of the delegation on the Governor's Business Development Mission to Japan met with executives from Sanken Electric. The discussion focused on the company's investments in Minnesota and the outlook for high-tech manufacturing in the state.