BLOOMINGTON, Minn. — A year ago, Polar Semiconductor told KARE 11 it was anxiously awaiting CHIPS Act funds.
Now, that money seems just within reach.
Governor Tim Walz's office says at the start of the month, $250 million in matching state funds were released to the Minnesota Department of Employment and Economic Development and will be used to invest in Minnesota's microchip industry.
"We saw during the pandemic, the breakdown in supply chains," said Walz. "And quite honestly, we saw some of the vulnerabilities of our country."
He said the microchip shortage highlighted the need for states to invest in local companies.
Walz toured Polar Semiconductors in Bloomington. Companies like this will need to apply for federal funds first through the CHIPS and Science Act, but there's no timeline on when that money will be released.
"It is a little bit more murky on how long the CHIPS program office is going to take to make those decisions," said Surya Iyer, Polar Semiconductor president and COO.
For now, DEED has already pushed out several million for machinery and job development to help prepare for the surge of investment money.
"We are poised for even greater growth in an industry that is already doing great things," said Matt Varilek, the commissioner for DEED.
Companies say the money will bring high-paying jobs to Minnesota.
The governor says he is working closely with the federal CHIPS Program Office on when applicants will be able to get that funding.
There is no hard timeline at the moment.
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