- The act has allocated significant funding, including over $35 billion in grants to support various semiconductor projects across the country.
- Polar Semiconductor specialises in manufacturing chips used in a variety of applications, including automotive and air conditioning systems.
OUR TAKE
The award to Polar Semiconductor is crucial as it supports the US government’s initiative to enhance domestic semiconductor manufacturing. This is particularly important given the global semiconductor shortage that has affected various industries, including automotive and electronics. By funding Polar Semiconductor, the US government is fostering innovation in semiconductor technology.
-Lia Xu, BTW reporter
What happened
The Biden administration has finalised its first binding award under the Chips and Science Act, granting $123 million to Polar Semiconductor. This funding could potentially double the company’s US manufacturing capacity in the next two years. Polar, based in Bloomington, Minnesota, produces chips for a wide range of applications, including automotive and HVAC systems.
Following a preliminary agreement announced in May, officials conducted due diligence before finalising the deal. Commerce Secretary Gina Raimondo described this as a significant step forward for the Chips Act, which aims to revitalise US semiconductor manufacturing with substantial financial support.
With companies like Intel and Taiwan Semiconductor Manufacturing committing nearly $400 billion to US projects, construction is ramping up across the nation. The federal government has allocated over $35 billion in grants for various semiconductor sites, and progress is being made toward finalising additional awards.
Also read: US may allow Nvidia to export advanced AI chips to Saudi Arabia, Semafor reports
Also read: Semiconductor body calls for EU ‘Chips Envoy’, more support
Why it’s important
This funding is a critical step in revitalising U.S. semiconductor production, addressing the growing need for chips across various industries, including automotive and defence. This grant to Polar Semiconductor will enable the company to scale its operations, ensuring a reliable supply of semiconductors that meet both consumer and national security needs. By reducing reliance on foreign suppliers, the U.S. can enhance its resilience against global supply chain disruptions, foster local job creation, and maintain a competitive edge in innovation.
The award to Polar Semiconductor signals the federal government’s strong commitment to revitalising the semiconductor manufacturing sector, which can have a ripple effect throughout the industry. By demonstrating active support through significant funding, the administration sends a clear message to other companies that investing in U.S. semiconductor capabilities is both feasible and beneficial. This influx of investment not only strengthens the semiconductor supply chain but also promotes collaboration among companies.
