SIA Applauds CHIPS Act Incentives for Polar Semiconductor’s Manufacturing Operations in Minnesota

by Semiconductor Industry Association

WASHINGTON—May 13, 2024—The Semiconductor Industry Association (SIA) today released the following statement from SIA President and CEO John Neuffer applauding semiconductor manufacturing incentives announced by the U.S. Commerce Department and Polar Semiconductor. The incentives, which are part of the CHIPS and Science Act, will support the expansion of Polar Semiconductor’s chip production capabilities in Minnesota, allowing Polar to double its U.S. fabrication capacity of sensor and power chips within two years and serve diverse market segments. As part of the announcement, Polar Semiconductor will also transition to become a U.S. majority-owned commercial foundry.

The Commerce Department previously announced incentives for Micron, Samsung, TSMC, Intel, GlobalFoundries, Microchip Technology, and BAE Systems.

“Today’s announcement will help Polar Semiconductor expand and innovate its production capabilities, enabling the company to better supply crucial U.S. industries like automotive, aerospace, defense, and medical devices. These incentives will continue to advance the critical priorities of the CHIPS and Science Act, bringing more semiconductor production, jobs, and innovation to U.S. shores. We commend Polar for its significant U.S.-based investments and applaud the U.S. Commerce Department for working to keep the CHIPS Act on track for success. We look forward to continuing to work with leaders in government and industry to ensure the CHIPS Act continues to reinvigorate U.S. chip manufacturing and research and development.”

The CHIPS Act’s manufacturing incentives have sparked substantial announced investments in the U.S. In fact, companies in the semiconductor ecosystem have announced more than 80 new projects across 25 U.S. states—totaling hundreds of billions of dollars in private investments—since the CHIPS Act was introduced. These announced projects will create more than 56,000 jobs in the semiconductor ecosystem and support hundreds of thousands of additional U.S. jobs throughout the U.S. economy.

An SIA-Boston Consulting Group report released last week projected the United States will triple its domestic semiconductor manufacturing capacity from 2022—when CHIPS was enacted—to 2032. The projected 203% growth is the largest projected percent increase in the world over that time. The report also projected America will capture over one-quarter (28%) of total global capital expenditures (capex) from 2024-2032, ranking second only to Taiwan (31%).

# # #

About SIA
The Semiconductor Industry Association (SIA) is the voice of the semiconductor industry, one of America’s top export industries and a key driver of America’s economic strength, national security, and global competitiveness. SIA represents 99% of the U.S. semiconductor industry by revenue and nearly two-thirds of non-U.S. chip firms. Through this coalition, SIA seeks to strengthen leadership of semiconductor manufacturing, design, and research by working with Congress, the Administration, and key industry stakeholders around the world to encourage policies that fuel innovation, propel business, and drive international competition. Learn more at www.semiconductors.org.