Biden Admin Shells Out $120 Million To Return Chip Startup To US Ownership

Brandon Vigliarolo reports via The Register: Not everything in the semiconductor industry is about shearing off every last nanometer, which is why the Biden administration is splashing out CHIPS Act funding to those pursuing less cutting edge processor production. Case in point, today's announcement that Bloomington, Minnesota-based Polar Semiconductor could be getting up to $120 million in CHIPS funds to double production capacity over the next two years, along with a possible buyout to return the business to U.S. hands. Polar, which manufactures semiconductors used primarily for the energy industry and electric vehicles, will use the funds to double its production capacity of sensor and power chips and upgrade its manufacturing kit, as well as adding 160 jobs to boot. Along with expanding production, the U.S. Department of Commerce said the funding would trigger additional private capital investment to "transform Polar from a majority foreign-owned in-house manufacturer to a majority U.S.-owned commercial foundry, expanding opportunities for U.S. chip designers to innovate and produce technologies domestically." In other words - sure it'll expand the output, but the real win is another majority U.S.-owned foundry for the White House to tout. According to its website, Polar is currently owned by Korean conglomerate SK Group and serves as the primary fab and engineering center for Japanese firm Sanken Electric. Not exactly companies in countries with poor U.S. relations - but overseas owners, nonetheless. "This proposed investment in Polar will crowd in private capital, which will help make Polar a U.S.-based, independent foundry," said U.S. Commerce secretary Gina Raimondo. "They will be able to expand their customer base and create a stable domestic supply of critical chips, made in America's heartland."

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