This Minnesota plant is getting a $123 million boost from the U.S. government to make more chips

The U.S. Commerce Department said on Tuesday it had finalized a $123 million grant for Polar Semiconductor to expand its plant in Minnesota, which would allow the company to nearly double its U.S. production capacity of power and sensor chips.

The award, part of the Biden administration’s $52.7 billion semiconductor manufacturing and research subsidy program, is the first in the program to be finalized by the department. Commerce will distribute funds based on Polar’s completion of project milestones.

Commerce Secretary Gina Raimondo said the award would help “create a new U.S.-owned foundry for sensor and power semiconductors” and boost Polar production from roughly 20,000 wafers per month to 40,000 serving aerospace, automotive, and defense needs.

The state of Minnesota is contributing $75 million to the $525 million expansion at Polar.

In April, Polar — 70% owned by Sanken Electric and 30% held by Allegro MicroSystems — said Niobrara Capital and Prysm Capital planned to invest $175 million for around 59% of Polar.

Commerce has allocated more than $35 billion for 26 projects including $6.4 billion in grants to South Korea’s Samsung to expand chip production in Texas, $8.5 billion for Intel, $6.6 billion for Taiwan’s TSMC to build out its American production and $6.1 billion for Micron Technology to fund U.S. factories.

The department must complete due diligence before it can finalize awards.

“We expect this to be the first of many awards to be finalized soon,” said top White House economic adviser Lael Brainard on Monday.

Added Raimondo: “You’re going to start to see more awards like this, dollars to companies in the coming weeks and months.”

The 2022 chips law championed by President Joe Biden aims to boost efforts to make the U.S. more competitive with China and dramatically expand U.S. chips production. The chips law also includes a 25% investment tax credit for building chip plants, estimated to be worth $24 billion.

Separately, Congress gave final approval on Monday to legislation that will streamline federal permitting processes for semiconductor manufacturing projects.

—David Shepardson, Reuters

https://www.fastcompany.com/91196360/minnesota-plant-getting-123-million-boost-u-s-government-make-more-chips?partner=rss&utm_source=rss&utm_medium=feed&utm_campaign=rss+fastcompany&utm_content=rss

Vytvorené 10mo | 24. 9. 2024, 17:10:04


Ak chcete pridať komentár, prihláste sa

Ostatné príspevky v tejto skupine

Tesla sets annual meeting for November amid shareholder pressure

Tesla has scheduled an annual shareholders meeting for November, one day after the

10. 7. 2025, 20:40:02 | Fast company - tech
OpenAI vs. Google could be the heavyweight battle of the half-century

Welcome to AI DecodedFast Company’s weekly newsletter that breaks down the most important news in

10. 7. 2025, 18:20:04 | Fast company - tech
The internet is obsessed with ‘Umamusume: Pretty Derby’

The internet’s latest obsession: training and cheering on anthropomorphized anime horses as they race around a track.

First released in 2021 as a mobile game for iOS and Android, Uma

10. 7. 2025, 15:50:09 | Fast company - tech
These Uber alums are building an army of AI agents for the workforce

Minh Pham and JJ Ford have a knack for riding the waves of new tech.

The duo joined Uber in its early days, helping to spearhead mobile development. When CEO Travis Kalanick was

10. 7. 2025, 15:50:07 | Fast company - tech