The Biden-Harris Administration has announced its first award under the CHIPS Incentives Program’s Funding Opportunity for Commercial Fabrication Facilities. The U.S. Department of Commerce will provide up to $123 million in direct funding to Polar Semiconductor to expand and modernize its manufacturing facility in Bloomington, Minnesota. This investment is part of the administration's broader Investing in America agenda.

President Joe Biden emphasized the significance of this initiative, stating, “Semiconductors – those tiny chips smaller than the tip of your finger – power everything from smartphones to cars to satellites and weapons systems. I signed the CHIPS and Science Act to revitalize American leadership in semiconductors, strengthen our supply chains, protect our national security, and advance American competitiveness.” He added that this announcement marks a new phase in implementing the CHIPS and Science Act.

U.S. Secretary of Commerce Gina Raimondo highlighted the importance of this milestone: “Today represents an important milestone in the implementation of the historic CHIPS and Science Act as we announce the first award agreement with Polar.” She noted that this investment would create a new U.S.-owned foundry for sensor and power semiconductors while modernizing Polar’s facilities.

The investment aims to nearly double Polar's U.S. production capacity for sensor and power chips within two years. It is expected to catalyze over $525 million from private, state, and federal sources, transforming Polar into a majority U.S.-owned commercial foundry. The project is anticipated to create more than 160 manufacturing and construction jobs in Minnesota.

National Economic Advisor Lael Brainard commented on the broader impact: “The Biden-Harris Administration’s investment into Polar marks the first award, of many to come, into communities across our nation to regain our lead in semiconductor manufacturing.”

Surya Iyer, President and Chief Operating Officer of Polar Semiconductor, expressed enthusiasm about the project: “Polar and its employees are excited to embark on our transformative project. We welcome new customers and partnerships...we will support technology and design innovation...and provide efficient low- to high-volume manufacturing with world-class quality.”

The purpose of this Award Phase is finalizing due diligence and negotiating final award documents. The Department will distribute funds based on completion milestones related both to capital expenditures for the project as well as production goals.

CHIPS for America has allocated over $35 billion across 16 states with plans for further investments expected to create over 115,000 jobs. Since President Biden took office, semiconductor companies have announced over $400 billion in private investments spurred by public funding initiatives like CHIPS for America.

For more information about Polar’s award or other details about CHIPS for America programs visit chips.gov.