The U.S. Department of Commerce finalized millions in federal dollars for Polar Semiconductor, including adding additional funding to support a larger workforce.
The Bloomington-based company announced the preliminary agreement for up to $120 million in May as part of the Creating Helpful Incentives to Produce Semiconductors (CHIPS) and Science Act that President Joe Biden signed in 2022 to bolster domestic manufacturing and make the U.S. more competitive globally in an industry Asia mostly dominates. Tuesday’s announcement added another $3 million to aid in Polar’s expansion and upgrade, particularly to “recruit, train and retain” workers, per a Department of Commerce news release.
“We expect the funding will allow the company to double its U.S. production capacity,” said U.S. Secretary of Commerce Gina Raimondo.
Polar’s total project budget is more than $525 million, and the project should create more than 160 construction and manufacturing jobs.
“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, Minnesota,” Biden said in a statement.
The CHIPS Act — which called for $53 billion of funding — has been a priority for the Biden administration, with Biden saying this first investment in Minnesota marks the initiative’s next phase.
U.S. Sen. Amy Klobuchar has also helped bring CHIPS money to her state.
“This landmark federal investment in Polar Semiconductor’s Bloomington facility is a major step toward strengthening domestic production of advanced semiconductors,” Klobuchar said in a statement. “I worked closely with Polar Semiconductor to secure this grant and ensure Minnesota continues to be a premier destination for business investment.”
