Polar Semi to become US merchant power foundry
Polar Semiconductor, a US-based semiconductor manufacturer specialising in sensor, power, and high-voltage wafer production, has completed its sale to Niobrara Capital and Prysm Capital.
The $175 M in equity financing has been closed to convert Polar to a US-owned merchant foundry and fund expansion of its Bloomington, Minnesota manufacturing facility.
In total, Polar expects to invest approximately $525M in the expansion of the facility over the next two years and branch into innovative technologies to serve new customers and markets.
Polar has signed Award Documents with the US Department of Commerce, under which it will receive up to $123M in direct funding as part of the US CHIPS and Science Act, and with the Minnesota Department of Employment and Economic Development (DEED), under which it will receive $75M in incentives as part of the Minnesota Forward Fund.
Polar is the first award recipient under the CHIPS Incentives Program’s Funding Opportunity for Commercial Fabrication Facilities and the Minnesota Forward Fund. Polar plans to claim the Department of the Treasury’s Investment Tax Credit, which is expected to be up to 25 percent of qualified capital expenditures.
Through these investments, Polar plans to: double production capacity, ramping up from approximately 20,000 wafers per month to nearly 40,000 wafers per month; upgrade and modernise its facility to become globally competitive; deliver cutting-edge semiconductor solutions to the US automotive, aerospace, defence, optoelectronics, MEMS, and medical device industries; and create over 160 new jobs.
“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 US Secretary of Commerce Gina Raimondo. “The Biden-Harris Administration’s investment in Polar will create a new US-owned foundry for sensor and power semiconductors and modernise and expand Polar’s facilities in Minnesota, strengthening our national and economic security, bolstering our supply chains, and creating quality jobs.”
Surya Iyer, president and COO of Polar Semiconductor, said, “Polar and its employees are excited to embark on our transformative project. We welcome new customers and partnerships, and as a domestic US-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.
Adding: "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 US Department of Commerce, the State of Minnesota, and the City of Bloomington for their support of the future of American semiconductor manufacturing.”
Chip Schorr, founder and managing partner of Niobrara Capital, said, “Polar is positioned to enable many of America’s most critical industries, such as aerospace and defence, automotive and medical, to have a dedicated, high performance, low cost, onshore source of power semiconductors and sensors. We are pleased to be partnering with the company to support its growth and the growth of US technology manufacturing leadership.”
