Polar Semiconductor could secure up to $120 million in potential CHIPS and Science Act funding through a non-binding preliminary memorandum of terms it signed with the Department of Commerce.
The Commerce Department said Monday Polar will use the proposed funding to launch new technology capabilities and expand its manufacturing facility to double its production of power chips and sensors within two years.
“This proposed investment in Polar will crowd in private capital, which will help make Polar a U.S.-based, independent foundry. They will be able to expand their customer base and create a stable domestic supply of critical chips, made in America’s heartland,” said Commerce Secretary Gina Raimondo.
The proposed funding is expected to help generate over 160 jobs in Minnesota and will support more than $525 million in investments from Polar, private investors and state and local entities in support of the company’s chip production capacity expansion efforts.
Polar will back its construction workforce through a project labor agreement with its construction partner Mortenson.