BLOOMINGTON, Minn. — Editor's note: The video above first aired on Aug. 12, 2022.
On Monday, Governor Walz and economic development officials announced a new $525 million project from a Bloomington company that could create 160 local jobs.
Polar Semiconductor plans to invest $525 million to expand its facility in Bloomington. Of that $525 million, $120 million is direct funding from the U.S. CHIPS and Science Act and $75 million is an investment from the Minnesota Forward Fund, according to a press release from Gov. Walz's office.
The company makes high-voltage semiconductors for automotive, commercial and industrial applications. Polar is the first company in Minnesota to receive money from the 2022 U.S. CHIPS and Science Act, a program designed to provide funding for the domestic production of semiconductors.
“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,” said Governor Walz in the written statement. “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.”
According to the release, expanding the semiconductor sector is a priority at both the state and federal level. Semiconductors are a core component in high-tech industries like computing and clean energy, and manufacturing semiconductors in the U.S. helps to reduce our need for products from foreign producers.
“The Minnesota Forward Fund is one of the ways the Walz-Flanagan Administration supports innovative companies like Polar Semiconductor that are helping build Minnesota’s cutting-edge economy,” said DEED Commissioner Matt Varilek. “Minnesota is home to a growing number of semiconductor companies that are creating hundreds of new, high-paying jobs every year. I appreciate the U.S. Commerce Department’s support as we make this innovative industry even stronger.”
Polar operates out of a 310,00 square foot facility where 540 workers are employed. The company currently makes around 20,000 wafer semiconductors a month. This expansion could double the company's monthly output and lead to 160 new jobs.
U.S. Senator Amy Klobuchar (D-MN) sits on the Commerce Committee that awarded Polar the $120 million in federal funding that will be instrumental in the expansion.
“If we want our country to continue leading the global economy, we must stay on the cutting edge of manufacturing," Sen. Klobuchar said in a released statement. "This landmark investment in Polar Semiconductor’s Bloomington facility will be a game changer for domestic semiconductor manufacturing. I’m proud to have worked with Polar Semiconductor to secure the resources needed to ensure Minnesota continues to be a leader in advanced manufacturing for decades to come.”
The CHIPS and Science Act was passed to provide resources to:
- Help companies build, expand, or modernize domestic facilities and equipment for semiconductor production.
- Kickstart development of the domestic semiconductor workforce and address near-term labor shortages.
- Make the largest five-year investment in public research and development in the nation’s history, including in critical technologies such as artificial intelligence and advanced manufacturing, as well as boosting STEM education and regional technology hubs.
This isn't the first time Polar Semiconductor has received funding from the state. DEED awarded the company $4.8 million from the Minnesota Investment Fund and Job Creation Fund last April. Polar also received nearly $415,000 in Minnesota Jobs Skills Partnership awards from DEED for worker training programs.
There are more than 150 semiconductor manufacturing companies in Minnesota, with an average wage of $85,000 annually for the more than 10,000 workers statewide.
Watch more Minnesota politics:
Watch the latest political coverage from the Land of 10,000 Lakes in our YouTube playlist:
WATCH MORE ON KARE 11+
Download the free KARE 11+ app for Roku, Fire TV, Apple TV and other smart TV platforms to watch more from KARE 11 anytime! The KARE 11+ app includes live streams of all of KARE 11's newscasts. You'll also find on-demand replays of newscasts; the latest from KARE 11 Investigates, Breaking the News and the Land of 10,000 Stories; exclusive programs like Verify and HeartThreads; and Minnesota sports talk from our partners at Locked On Minnesota.
- Add KARE 11+ on Roku here or by searching for KARE 11 in the Roku Channel Store.
- Add KARE 11+ on Fire TV here or by searching for KARE 11 in the Amazon App Store.
- Learn more about the KARE 11+ app for Apple TV in the Apple App Store.
- Learn more about KARE 11+ here.