Federal officials announced on Monday that they will provide up to $120 million in grants to Polar Semiconductor to help the company expand its chip manufacturing facility in Minnesota. This move is part of the Biden administration’s efforts to strengthen the U.S. supply of semiconductors, which are crucial for a wide range of industries including cars, defense systems, and electrical grids.
The grant from the Commerce Department will enable Polar to upgrade its technology and double its production capacity at its facility in Bloomington, Minn., within the next two years. This funding is part of the bipartisan CHIPS and Science Act, which aims to boost domestic production of commercial semiconductors and reduce reliance on foreign suppliers.
President Biden’s economic policy agenda includes a focus on bolstering American manufacturing and bringing back jobs that have shifted overseas. With only about 10 percent of the world’s semiconductors currently produced in the United States, the administration is working to increase domestic chip production to prevent costly shortages like those experienced during the pandemic.
Polar Semiconductor is just one of several companies to receive federal grants for expanding chip manufacturing facilities. The company plans to create over 160 manufacturing and construction jobs in Minnesota as part of its expansion project, which is expected to cost more than $525 million. The federal award will also help Polar establish itself as a U.S.-owned independent foundry, allowing the company to expand its customer base.
Surya Iyer, the president and chief operating officer of Polar, emphasized the importance of the federal funding for the company’s expansion. He stated that without this financial support, a project of this magnitude would not be feasible.
Overall, the grant to Polar Semiconductor represents a significant step towards strengthening the U.S. semiconductor industry and reducing reliance on foreign suppliers. The Biden administration’s efforts to ramp up domestic chip production are aimed at securing the supply chain and bolstering American manufacturing.
