Polar Semi in $525m power fab expansion to become US owned
Polar Semiconductor is investing $525m in a doubling of capacity at its power fab that will see the company become majority-owned in the US.
Polar Semi, based in Bloomington, Minnesota, is currently majority owned by the SK Group in South Korea and the deal is intended to bring the company back to US majority ownership.
It makes silicon technologies down to 180nm as well as 750V IGBT and 40V to 100V MOSFETs. All active components meet AEC-Q100 requirements and all passive components meet AEC-Q200 requirements for automotive designs.
It also has high voltage BCD products with LDMOS up to 1200V with various isolation schemes (LOCOS/DTI/JI) and are used in automotive, commercial and industrial applications.
US investors Niobrara Capital and Prysm Capital will lead a $175m equity investment in Polar to become majority investors, while the US has also confirmed $120m of backing under the CHIPS and Science Act in the eighth government deal.
Polar, based in, will also receive $75m from the state government to increase capacity of 200mm wafer from 20,000 wafers per month to nearly 40,000 wafers per month in the next two years.
It will also expand and modernize the fab with new automation and AI capabilities to better serve customers in automotive, aerospace and defense, optoelectronics, MEMS, and medical devices in the US.
“We are very pleased to announce this historic investment in Minnesota semiconductor manufacturing. Our expanded manufacturing facility will allow us to increase capacity and branch into innovative technologies to serve new customers and markets,” said Surya Iyer, President and COO of Polar Semiconductor.
Chip Schorr, Founder and Managing Partner of Niobrara Capital, said, “Polar is positioned to enable many of America’s most critical industries, such as aerospace and defense, automotive and medical, to have a dedicated, high performance, low cost, onshore source of power semiconductors and sensors. We are pleased to be partnering with the company to support its growth and the growth of U.S. technology manufacturing leadership.”
Jay Park, Co-Founder and Managing Partner of Prysm Capital, said “The public and private investment in Polar is a testament to the strength of Polar’s offering and team and a significant event for onshore technology investment in America. We are already seeing robust demand for Polar’s planned capacity that exceeds our expectations and reinforces our confidence in Polar.”
Polar Semiconductor is a leader of the Minnesota CHIPS Coalition, formed by the GREATER Minneapolis–Saint Paul Partnership, the economic development partnership for the 15-county region, in late 2022 after the passage of the federal CHIPS and Science Act. This is composed of more than 70 organizations, including manufacturers, supply-chain partners, education and training providers, labor organizations, and state and local governments to reinvigorate the region’s legacy in technology.
“As a key leader in the Minnesota CHIPS Coalition, Polar Semiconductor is accelerating the growth of Minnesota’s existing semiconductor and microelectronics industry with their investment in Bloomington,” said Peter Frosch, President and CEO of the GREATER MSP Partnership. “Together with Polar and more than 70 organizations across industry, government, academia, and community, we have a shared ambition to double the size of the semiconductor and microelectronics industry in Minnesota by adding 10,000 more great jobs. The State of Minnesota’s $250 million match funds for CHIPS, along with federal grants, makes us ready to scale the industry here in Minnesota.”
The Commerce Department has received more than 650 statements of interest, more than 200 pre-applications and full applications for the first round of funding for the CHIPS Act (NOFO 1), and more than 160 small supplier concept plans for NOFO 2.
The Department says it is continuing to conduct rigorous evaluation of applications to determine which projects will advance US national and economic security, attract more private capital, and deliver other economic benefits to the country.
The announcement with Polar Semiconductor is the eighth announcement the Department of Commerce has made under the CHIPS and Science Act, with additional announcements expected to follow throughout 2024.
www.chips.gov; www.polarsemi.com
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