Twin Cities Semiconductor Plant Announces $525M Expansion

ST. PAUL, MN — Polar Semiconductor will invest $525 million to expand its Bloomington manufacturing facility, Gov. Tim Walz and officials from the U.S. Department of Commerce announced Monday.

The investment leverages $120 million in direct funding from the U.S. CHIPS Act and $75 million from the Minnesota Forward Fund, a state initiative to fuel business expansion.

Reducing American dependency on foreign producers like China for semiconductors is seen as a matter of national security. Semiconductors are a core component of all high-tech industries.

"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," Walz said.

"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."

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, according to the governor's office.

Polar produces around 20,000 wafer semiconductors per month, and its $525 million expansion will allow the company to double its monthly output and lead to 160 new jobs, according to the governor's office.

The 2022 U.S. CHIPS and Science Act was a $53 billion initiative by Congress President Joe Biden to grow U.S. semiconductor manufacturing, research and development, and workforce.

"This proposed investment in Polar will crowd in private capital, which will help make Polar a U.S.-based, independent foundry," said U.S. Secretary of Commerce Gina Raimondo. "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," said Surya Iyer, President of Polar Semiconductor.