BLOOMINGTON, Minn. — 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. 

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. 

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