Biden-Harris Administration Announces First CHIPS Commercial Fabrication Facilities Award with Polar Semiconductor, Establishing Independent American Foundry
This week, the U.S. Department of Commerce announced its first award under the CHIPS Incentives Program’s Funding Opportunity for Commercial Fabrication Facilities of up to $123 million in direct funding to Polar Semiconductor (Polar). The award follows the previously signed preliminary memorandum of terms and the completion of the Department’s due diligence. The award will expand and modernize the company’s manufacturing facility in Bloomington, Minnesota. The Department will distribute the funds based on Polar’s completion of project milestones.
“Today represents an important milestone in the implementation of the historic CHIPS and Science Act as we announce the first award agreement with Polar,” said U.S. Secretary of Commerce Gina Raimondo. “The Biden-Harris Administration’s investment in Polar will create a new U.S.-owned foundry for sensor and power semiconductors and modernize and expand Polar’s facilities in Minnesota, strengthening our national and economic security, bolstering our supply chains, and creating quality jobs.”
What They Are Saying:
President Joe Biden: “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. And over the last three and a half years, we have done just that, catalyzing over $400 billion in private sector investments in semiconductors and electronics that are creating over 115,000 construction and manufacturing jobs. Since the start of my Administration, the United States has seen more investment in electronics manufacturing construction than it did over the prior 24 years combined. Today’s announcement that the Department of Commerce has finalized the first commercial CHIPS Incentives award with Polar Semiconductor marks the next phase of the implementation of the CHIPS and Science Act, and demonstrates how we continue to deliver on the Investing in America agenda. Polar’s new facility will also be completed under a Project Labor Agreement to support its construction workforce, creating good-quality union jobs in Bloomington, Minnesota. Today’s announcement is just one of the many ways our Investing in America agenda is reshoring U.S. manufacturing, investing in workers and communities across the country, and advancing America’s leadership in the technologies of tomorrow.” [Statement]
U.S. Senator Amy Klobuchar (MN): “America must stay on the cutting edge of manufacturing to maintain our economic edge on the world stage. This landmark federal investment in Polar Semiconductor’s Bloomington facility is a major step toward strengthening domestic production of advanced semiconductors. I worked closely with Polar to secure this grant and ensure Minnesota continues to be a premier destination for business investment.” [Statement]
Minnesota Governor Tim Walz: “Minnesota is lucky to be home to businesses like Polar that consistently produce innovative, high-quality products with a global reach. With partnerships like this, we can lead the nation in creating high-growth, high-demand, good-paying jobs.” [Statement]
Surya Iyer, President and COO, Polar Semiconductor: “Polar and its employees are excited to embark on our transformative project. We welcome new customers and partnerships, and as a domestic U.S.-owned sensor and advanced power semiconductor merchant foundry, we will support technology and design innovation, protect intellectual property, facilitate onshoring and technology transfers, and provide efficient low- to high-volume manufacturing with world-class quality. Through our collaborative and sustained workforce development efforts, we expect to support customers with highly skilled employees today and into the future. We are pleased to close on the significant equity investment from Niobrara Capital and Prysm Capital, and we extend our sincere thanks to our partners at the U.S. Department of Commerce, the State of Minnesota, and the City of Bloomington for their support of the future of American semiconductor manufacturing.” [Statement]
John Neuffer, President and CEO, Semiconductor Industry Association: “We applaud Polar Semiconductor and the U.S. Department of Commerce for working diligently to finalize this agreement, which represents a key milestone in the implementation of the historic CHIPS and Science Act. We are encouraged by the progress being made to get critical CHIPS awards out the door and directed to projects promoting U.S.-based semiconductor production and innovation. And we hope today’s final award is the first of many more to come over the next weeks and months. We look forward to continuing to work with leaders in industry and government to ensure the CHIPS Act delivers maximum benefits for America’s economic and national security.” [Statement]
Tom Dicklich, Executive Director, Minnesota Building Trades: “The Minnesota Building Trades are thrilled by the announcement of the first CHIPS Act award to Polar Semiconductor. Since the facility’s construction in 1969 Polar Semiconductor has been a client of our signatory contractors and has employed our members. When we heard they were pursuing this funding, there was no hesitation, we were immediately onboard in support of their application. Working with Mortenson we negotiated a Project Labor Agreement (PLA) for this expansion project which guarantees Polar will have the skilled construction workforce needed to complete this expansion. None of this would be possible without the Biden-Harris administration’s focus on investments in American manufacturing. Our members are excited to get to work on this project and to build the critical infrastructure our country needs to further our national security interests.”
Biden-Harris Administration Launches NSTC Workforce Center of Excellence with Expected $250 Million Investment
Earlier this week, the Biden-Harris Administration announced the launch of the National Semiconductor Technology Center’s (NSTC) Workforce Center of Excellence (WCoE), making a decisive step toward solving one of the most pressing challenges facing the U.S. semiconductor industry – workforce development. As the world experiences an unprecedented demand for advanced semiconductors, America’s determination to remain a global leader in this critical technology hinges on maintaining a highly skilled and adaptable workforce. In doing so, they will build on the Administration’s existing work to connect Americans to good-paying jobs created by the President’s Investing in America agenda—including launching nine workforce hubs across the country.
To address this, the WCoE, a critical part of CHIPS for America’s workforce development efforts, will bring together stakeholders from across the private sector, government, non-profits, training providers, community and technical colleges, universities, and labor organizations to develop innovative solutions to the industry’s workforce challenges, accelerate best practices, promote good jobs, and strengthen recruitment and training of the next generation of semiconductor researchers, engineers, and technicians.
The Department of Commerce’s expected $250 million investment into the WCoE over ten years will advance President Biden and Vice President Harris’s goals of driving innovation in the United States and supporting workers in securing good-paying semiconductor jobs. As part of today’s announcement, Natcast, the non-profit entity designated to operate the NSTC by the Department of Commerce, announced more than $11 million in anticipated awards across more than a dozen states and nationally through the NSTC Workforce Partner Alliance (WFPA) program to further support workforce development efforts.
CHIPS for America Releases METIS Data Exchange Ecosystem for Supporting Metrology Innovation
CHIPS for America released a beta version of the Metrology Exchange to Innovate in Semiconductors (METIS). A major milestone for the CHIPS Metrology Program, METIS will give stakeholders access to CHIPS Metrology research results and serve to catalyze innovative breakthroughs in U.S. semiconductor manufacturing.
To be successful, a data plan must be adopted by the communities it serves. Sharing and exchanging data, models, and other data products, like those that will be available through METIS, allows for world-leading microelectronics research to be transferred to the marketplace, enabling, and supporting U.S. security and commercial competitiveness.
The beta version released today includes initial data from three CHIPS Metrology Projects:
To date, CHIPS for America has funded over $190 million across over 40 projects helping to develop new measurement instruments, measurement methods, and measurement-informed models and simulations for advanced microelectronics design and manufacturing. Once fully deployed, METIS will make available research and data from all CHIPS Metrology projects.
Department of Commerce and U.S. National Science Foundation Announce a New $30M Funding Opportunity, Funded by the CHIPS & Science Act, to Prepare Talent for Semiconductor Jobs Nationwide
Today, the Department of Commerce (DOC) and U.S. National Science Foundation (NSF) announced a $30 million funding opportunity, as part of the bipartisan CHIPS & Science Act that was signed into law by the Biden-Harris Administration, to establish the Network Coordination Hub that will manage the National Network for Microelectronics Education (NNME) and lead its national strategy to train skilled workers for good-paying jobs needed in the U.S. semiconductor and microelectronics industry over the next decade. The Hub will be managed by NSF in close coordination with the DOC.
Proposers interested in operating the Network Coordination Hub must apply by Oct. 28, 2024, at 4 p.m. EDT. To apply and learn more, please read the solicitation here. Additionally, NSF will be hosting an informational webinar on Oct. 4, 2024, at 1:00 p.m. EDT to discuss the funding opportunity. NSF and DOC encourage interested parties to submit questions to NNME@nsf.gov.
Bloomberg: US Finalizes First Binding Chips Award With Polar Semiconductor
[Mackenzie Hawkins, 9/24/24]
- Company to receive $123 million, helping it double US capacity
- Agreement marks first finalized accord under subsidy program
The Biden administration has finalized its first binding award under the Chips and Science Act: a $123 million grant to Polar Semiconductor that officials say could double the company’s US manufacturing capacity within two years.
After unveiling a preliminary funding agreement with Polar Semiconductor in May, US officials have been going through a due diligence process and additional negotiations to reach a final accord. Polar, based in Bloomington, Minnesota, makes chips that go into everything from cars to air conditioners.
Central NY Business Journal: AFT, RIT to use federal awards for semiconductor-workforce training initiatives
[Eric Reinhardt, 9/26/24]
Two New York–based programs will use federal funding of more than $3.2 million to prepare New York high school and college students for careers in the semiconductor industry.
The awards include more than $1.7 million for the American Federation of Teachers (AFT), U.S. Senate Majority Leader Charles Schumer (D–N.Y.) announced Wednesday. AFT will use the funding to expand a program that prepares teachers in school districts across the state to help students get ready for careers in the semiconductor industry.
The Rochester Institute of Technology (RIT) will also use about $1.48 million to implement a new online certificate program to train students across microelectronics-related educational tracks.
Phoenix Business Journal: Maricopa colleges to benefit from $250M chip sector job training investment
Federal government also considering US sites for Workforce Center of Excellence
[Amy Edelen, 9/26/24]
The White House is investing $250 million over 10 years to establish a national semiconductor workforce training center, the U.S. Department of Commerce announced Wednesday.
The National Semiconductor Technology Center’s Workforce Center of Excellence will bring together officials from the private sector, nonprofits, academia, government and labor organizations to accelerate industry best practices as well as strengthen recruitment and training for the next generation of semiconductor researchers, engineers and technicians, according to a Department of Commerce release.
ICYMI: SBIR Poster Session
 CHIPS for America hosted a congressional poster session today to honor the 17 CHIPS Metrology Small Business Innovation Research (SBIR) program award recipients and commemorated the first award for the CHIPS Research and Development Office.
This poster session brought together awardees from across the United States to showcase the contributions small businesses make to securing US leadership in semiconductor research and development.
Following Under Secretary of Commerce for Standards and Technology Dr. Laurie Locascio’s opening comments, bipartisan members of the House and Senate attended to hear more about the impact awardees will make on America’s semiconductor innovation ecosystem
About CHIPS for America
CHIPS for America is part of President Biden’s economic plan to invest in America, stimulate private sector investment, create good-paying jobs, make more in the United States, and revitalize communities left behind. CHIPS for America includes the CHIPS Program Office, responsible for manufacturing incentives, and the CHIPS Research and Development (R&D) Office, responsible for R&D programs. Both offices sit within the National Institute of Standards and Technology (NIST) at the Department of Commerce. NIST promotes U.S. innovation and industrial competitiveness by advancing measurement science, standards, and technology in ways that enhance economic security and improve our quality of life. NIST is uniquely positioned to successfully administer the CHIPS for America program because of the bureau’s strong relationships with U.S. industries, its deep understanding of the semiconductor ecosystem, and its reputation as fair and trusted. Visit https://www.chips.gov to learn more.
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