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US finalises $123 million chips award for Polar Semiconductor

Economic TimesEconomic Times · 2m
US finalises $123 million chips award for Polar Semiconductor

The U.S. Commerce Department has approved a $123 million grant for Polar Semiconductor to expand its Minnesota plant, allowing the company to increase its production capacity of power and sensor chips. This grant is part of the Biden administration's $52.7 billion subsidy program for semiconductor manufacturing and research. Commerce Secretary Gina Raimondo stated that the funding will help establish a new U.S.-owned foundry for sensor and power semiconductors and enhance Polar's production capabilities. The expansion is expected to serve the aerospace, automotive, and defense industries. The state of Minnesota is also contributing $75 million towards the project. This is the first grant to be finalized by the Commerce Department under the subsidy program.

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