BLOOMINGTON, Minn. — A Minnesota semiconductor manufacturer will receive $123 million in federal funds to expand and modernize its facility in Bloomington.

U.S. Senator Amy Klobuchar (D-MN) announced the grant Tuesday, saying Polar Semiconductor is the first company in the country to move from a preliminary agreement to an actual award. The money is expected to double Polar’s capabilities and create jobs both in the manufacturing and construction sectors. 

Polar makes high-voltage semiconductors for use in cars and trucks, plus commercial and industrial applications. The company says it produces 21,000 wafer semiconductors each month. 

“America must stay on the cutting edge of manufacturing to maintain our economic edge on the world stage. This landmark federal investment in Polar Semiconductor’s Bloomington facility is a major step toward strengthening domestic production of advanced semiconductors,” said Sen. Klobuchar in a released statement. “I worked closely with Polar Semiconductor to secure this grant and ensure Minnesota continues to be a premier destination for business investment.”

Klobuchar, a senior member of the Senate Commerce Committee, says the CHIPS and Science Act was passed to boost semiconductor production and help American manufacturers stay competitive on the world stage by:

1. Helping companies build, expand, or modernize domestic facilities and equipment for semiconductor production.
2. Kickstarting development of the domestic semiconductor workforce to address near-term labor shortages.
3. Making the largest five-year investment in public research and development in U.S. history, including in critical technologies like artificial intelligence and advanced manufacturing, as well as boosting STEM education and regional technology hubs.