Polar Semiconductor Sold to Niobrara and Prysm, Plans $525M Facility Expansion
Slice of Manufacturing Team
09/26/2024
Key Highlights:
- $175M sale to Niobrara Capital and Prysm Capital to fund Polar's conversion to a U.S.-owned merchant foundry.
- $525M investment over two years to expand Bloomington, MN manufacturing facility.
- CHIPS Act funding: $123M from U.S. Department of Commerce, $75M from Minnesota DEED incentives.
- Doubling production capacity from 20,000 to 40,000 wafers per month and creating over 160 jobs.
- Supporting U.S. industries including automotive, aerospace, defense, and medical sectors.
Source: Business Wire
Quotes
“ "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." ”
President Joe Biden at United States
Our Take:
Polar Semiconductor's expansion is a pivotal move for U.S. semiconductor manufacturing, driven by strong public-private partnerships and strategic investments. As the first recipient of CHIPS Act funding for commercial fabrication facilities, Polar sets a precedent for revitalizing domestic production capacity. This investment also promises to enhance America’s technological leadership, particularly in sectors crucial to national security and innovation. The partnership with Niobrara and Prysm strengthens Polar's potential to meet growing demand while contributing to U.S. supply chain resilience.
