The Biden administration announced Monday that Polar Semiconductor will receive up to $120 million in federal funds to expand its chip manufacturing facility in Minnesota. The funding comes from the bipartisan CHIPS and Science Act, which Biden signed into law in August 2022 to boost US semiconductor supply.
The expansion of Polar Semiconductor’s facilities would allow the company to double its production capacity in the US of sensor and power chips within two years, the US Commerce Department said in a news release. The company produces semiconductors used in automobiles, power grids, defense systems and more.
Polar Semiconductor has received state and federal support for its proposed expansion, including $75 million from the Minnesota Department of Employment and Economic Development (DEED).
“This proposed investment in Polar will bring together private capital, which will help make Polar an independent, US-based foundry,” US Commerce Secretary Gina Raimondo said in the press release. “They will be able to expand their customer base and establish a steady domestic supply of critical chips, made in America’s heartland.”
The award is the latest federal grant to come from the CHIPS and Science Act, which was seen as a response to supply chain bottlenecks that have been an ongoing issue since Asia was hit hard in the early days of the pandemic. The law was also a response to simmering tension between the US and China.
In March, the Biden administration proposed up to $8.5 billion to support Intel’s US manufacturing. The company plans to build semiconductor facilities in Chandler, Arizona. Rio Rancho, New Mexico; and Hillsboro, Oregon. In April, the White House signed an agreement to grant Taiwan Semiconductor Manufacturing Company (TSMC) $6.6 billion in financing to set up semiconductor factories in Phoenix, Arizona.
Last week, the Biden administration announced it is seeking to fund efforts to improve semiconductor manufacturing using digital twins, which are virtual models used to test and optimize physical objects and systems. The administration will accept applications for a total of $285 million in funding.
