Polar Semiconductor is to get $120 million of US Chips Act money to double its manufacturing capacity for power chips and sensors.

The funding will attract total investment of $525 million from private sources, from the company and from the state of Minnesota and other local entities  which will transform Polar from a foreign majority owned foundry to a majority US-owned foundry.

IMG_3091-150x150.jpegPolar will also apply for the 25% tax credit allowable under the Chips Act for manufacturing investments.

“Polar and its employees are grateful to the U.S. Department of Commerce and the State of Minnesota throughout this process,” says Polar COO Urya Iyer, “Polar is also pleased to welcome a significant equity investment from Niobrara Capital and Prysm Capital, which will allow the Company to become U.S.-owned, and for the continued support of our long-term partners, Sanken Electric and Allegro MicroSystems.”

 

Polar has received $75 million from the Minnesota Department of Employment and Economic Development.

Polar  was founded in 1962 by Control Data the mainframe manufacturer, as a unit for developing ICs for controlling hard discs. It  built its first fab in 1969.