CHIPS for America Week in Review

On Monday, the Biden-Harris Administration announced that the U.S. Department of Commerce and Polar Semiconductor (Polar) have reached a non-binding preliminary memorandum of terms (PMT) to provide the company with up to $120 million in proposed federal incentives under the CHIPS and Science Act. This proposed funding would catalyze investment from private and state sources to expand Polar's manufacturing facility and introduce new technology capabilities in Bloomington, Minnesota. The expansion and modernization would enable Polar to double its U.S. production capacity of sensor and power chips within two years. Additionally, this proposed investment would bring in more U.S. private capital, which would transform Polar from a majority foreign-owned in-house manufacturer to a majority U.S.-owned commercial foundry, expanding opportunities for U.S. chip designers to innovate and produce technologies domestically.   

“Thanks to President Biden’s leadership, with this announcement we are making taxpayer dollars go as far as possible to create jobs, secure our supply chains, and bolster manufacturing in Minnesota,” said U.S. Secretary of Commerce Gina Raimondo. “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.” 

U.S. Senator Amy Klobuchar (MN): “We passed the bipartisan CHIPS Act so America could stay on the cutting edge and lead the global economy. Excited to announce that Bloomington’s own Polar Semiconductor will receive major federal funding from the CHIPS program to expand manufacturing.”   

U.S. Senator Tina Smith (MN): "In 2022 when President Biden signed the bipartisan CHIPS and Science Act into law, he was looking towards a future where America is leading again. And American workers, businesses, and communities – just like this community in Bloomington – are more secure, more competitive, and have more opportunity… With this project, we are rebuilding American manufacturing. We are honing our competitive edge. And we are building a future right here in Minnesota." 

Governor of Minnesota Tim Walz: “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. 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.” 

Mayor Tim Busse of Bloomington, Minnesota: “Bloomington has always been a place where innovation thrives. Polar Semiconductor’s significant private investment in expanding its facilities, with direct funding from the CHIPS and Science Act and a substantial investment by the State of Minnesota, will boost our local economy and will contribute to the growth and vibrancy of semiconductor manufacturing in Bloomington. We're excited to see the tangible benefits of these investments right here in our city, bringing jobs and new opportunities for our workforce and community.” 

John Neuffer, President and CEO, Semiconductor Industry Association: “Today’s announcement will help Polar Semiconductor expand and innovate its production capabilities, enabling the company to better supply crucial U.S. industries like automotive, aerospace, defense, and medical devices. These incentives will continue to advance the critical priorities of the CHIPS and Science Act, bringing more semiconductor production, jobs, and innovation to U.S. shores. We commend Polar for its significant U.S.-based investments and applaud the U.S. Commerce Department for working to keep the CHIPS Act on track for success. We look forward to continuing to work with leaders in government and industry to ensure the CHIPS Act continues to reinvigorate U.S. chip manufacturing and research and development.” 

Joe Stockunas, President, SEMI Americas: “SEMI applauds the U.S. Department of Commerce for its continued investments to fortify the domestic semiconductor supply chain. This proposed CHIPS Act funding for Polar Semiconductor is part of more than $525 million in investments by the company and state, local and private entities to help meet growing demand for sensor and power chips used in a diverse range of applications and markets – from automotive and home appliances to industrial robotics. We congratulate the company on this important step forward for its foundry business.” 

United Association of Plumbers and Pipefitters: “Exciting news! With a PLA in place, the Biden Administration’s $120M investment in Polar Semiconductor boosts U.S. chip production and creates good-paying union jobs.” 

Star Tribune: Polar Semiconductor lands up to $120 million from CHIPS program 

[Burl Gilyard, 5/13/24] 

Polar Semiconductor will receive up to $120 million in federal funds to expand and upgrade its Bloomington facility. 

The U.S. Department of Commerce and Polar signed a preliminary agreement for the money, which comes from the CHIPS (Creating Helpful Incentives to Produce Semiconductors) and Science Act program. Polar's project will cost $525 million. 

New York Times: U.S. Awards $120 Million to Chipmaker to Expand Facility in Minnesota 

[Madeleine Ngo] 

Federal officials will provide up to $120 million in grants to Polar Semiconductor to help the company expand its chip manufacturing facility in Minnesota, the Biden administration announced on Monday, the latest in a string of awards meant to strengthen the U.S. supply of semiconductors. 

Commerce Department officials said the grant would help Polar upgrade technology and double production capacity at its facility in Bloomington, Minn., within two years. The company produces chips that are critical for cars, defense systems and electrical grids, federal officials said. 

On April 16, 2024, the U.S. Department of Commerce issued a Notice of Funding Opportunity (NOFO) to seek applications from eligible small businesses to explore the technical merit or feasibility of an innovative idea or technology for developing a viable product or service for introduction in the commercial microelectronics marketplace.  

The CHIPS for America program anticipates up to approximately $54 million in funding across multiple topics on research projects for critically needed measurement services, tools, and instrumentation; innovative manufacturing metrologies; novel assurance and provenance technologies and advanced metrology research and development (R&D) testbeds to help secure U.S. leadership in the global semiconductor industry.  

Full Applications are due June 14, 2024.  

Achieving the CHIPS Act economic and national security objectives will require all hands on deck. To ensure that everyone, including women, can participate and thrive in the U.S. semiconductor economy, the CHIPS Program Office (CPO) requires that CHIPS applicants requesting over $150 million in direct funding provide a child care plan for both facility and construction workers. For those below the $150 million threshold, CPO still strongly encourages applicants to provide a child care plan. To support the development of impactful child care plans, CPO produced a webinar dedicated to “Designing & Acting on Child Care Solutions.” 

What you’ll learn about:  

• The U.S. child care landscape and the significance of care for the workforce  
• The importance of gauging employee care needs and community engagement  
• Best practices for developing a child care plan 

If you work for an organization that provides child care solutions or you are an applicant seeking child care solutions, please consider joining or reviewing our teaming partner list.