American Invest Hub
  • Politics
  • Investing
  • Business
  • Latest News

American Invest Hub

  • Politics
  • Investing
  • Business
  • Latest News
Business

US finalizes $123 million grant to expand Polar Semiconductor

by admin September 24, 2024
September 24, 2024
US finalizes $123 million grant to expand Polar Semiconductor

The US Department of Commerce has approved a $123 million grant to Polar Semiconductor, enabling the company to significantly expand its chip manufacturing facility in Minnesota.

This expansion will almost double its production capacity for power and sensor chips, addressing growing demand in key sectors such as automotive, aerospace, and defense.

This grant is a milestone in the Biden administration’s ambitious $52.7 billion semiconductor subsidy program, aimed at strengthening domestic manufacturing and research.

The financial support for Polar Semiconductor represents the first finalized award from this fund, with more expected to follow as companies meet project benchmarks.

Expansion to boost US chip output

With this expansion, Polar Semiconductor will increase production from approximately 20,000 to 40,000 wafers per month, according to Commerce Secretary Gina Raimondo.

She emphasized the importance of this move, stating it would lead to the creation of a new US-owned facility dedicated to sensor and power semiconductors, reinforcing the nation’s position in the global chip supply chain.

In addition to federal funding, the state of Minnesota is contributing $75 million toward Polar’s $525 million expansion, demonstrating broad support for enhancing domestic chip production capabilities.

Private investment is also playing a significant role in this expansion.

In April, Polar Semiconductor, which is 70% owned by Japan’s Sanken Electric and 30% by Allegro MicroSystems, announced a new investment from Niobrara Capital and Prysm Capital.

The two firms plan to invest $175 million in Polar, gaining a 59% stake in the company.

This influx of capital underscores investor confidence in the semiconductor industry, which has become increasingly vital in the global economy.

Broader US efforts to bolster chip manufacturing

The $123 million grant for Polar Semiconductor is part of a broader push by the US government to expand domestic chip production in the face of growing competition from China.

In addition to grants, the 2022 CHIPS Act, backed by President Joe Biden, provides a 25% investment tax credit for building semiconductor plants, estimated to be worth $24 billion.

To date, the Commerce Department has earmarked over $35 billion in funding for 26 semiconductor projects, including notable allocations of $6.4 billion to Samsung for its Texas-based operations, $8.5 billion to Intel, $6.6 billion to Taiwan’s TSMC, and $6.1 billion to Micron Technology to boost US factory capacity.

However, final approval for these awards depends on the completion of due diligence and fulfillment of project milestones.

More grants to follow

According to top White House economic adviser Lael Brainard, this award to Polar Semiconductor marks the beginning of a series of finalizations expected in the coming weeks.

Commerce Secretary Raimondo echoed this, suggesting that additional companies will soon receive similar financial backing, further advancing the administration’s goal of making the US a leader in semiconductor manufacturing.

In a related development, Congress recently approved legislation to streamline federal permitting processes for semiconductor manufacturing projects.

This is expected to accelerate the development of new plants and the expansion of existing facilities, further supporting the country’s efforts to boost its domestic chip production capacity.

The post US finalizes $123 million grant to expand Polar Semiconductor appeared first on Invezz

0
FacebookTwitterGoogle +Pinterest
previous post
MercadoLibre stock has surged to a record high: still a buy?
next post
Geopolitics more crucial than interest rates in Japan and US, says JPMorgan CEO

Related Posts

Cloudflare stock price forecast: eying ATH after flipping...

June 29, 2025

Kenya’s Safaricom in talks with Starlink for satellite...

September 28, 2024

European markets open: Stoxx 600 gains ahead of...

June 5, 2025

Women’s college basketball final expected to set new...

April 7, 2024

‘It is time to break up Live Nation’:...

May 25, 2024

The housing crunch is still squeezing buyers —...

July 31, 2024

This US bank stock could gain from Trump’s...

March 19, 2025

Asian markets open: positive start for Nikkei; Sensex...

June 16, 2025

Deliveroo shares soar on takeover bid, but analysts...

April 28, 2025

Why Pfizer sold its $3 billion stake in...

January 15, 2025

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest News

    • FBI raid on John Bolton’s home in Washington linked to classified documents

      August 25, 2025
    • Argentine senate deals blow to Milei’s austerity agenda with university budget boost

      August 25, 2025
    • Jackson Hole Symposium: what Powell said about economic effects of Trump’s tariffs

      August 25, 2025
    • At Jackson Hole, Fed Chair Powell signals possible cuts while warning of uncertainty

      August 25, 2025
    • Trump threatens to fire Fed Governor Lisa Cook amid mortgage fraud allegations

      August 25, 2025

    Categories

    • Business (3,763)
    • Investing (2,783)
    • Latest News (2,048)
    • Politics (1,530)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: americaninvesthub.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 americaninvesthub.com | All Rights Reserved