Polar Semi Announces $525m Power Fab Expansion Under US Ownership

Polar Semiconductor, based in Bloomington, Minnesota, is making a significant investment of $525 million to double its capacity at its power fab. This move will result in the company shifting towards majority ownership in the US, a strategic decision aimed at strengthening its presence in the American semiconductor market. Currently, the company is primarily owned by the SK Group in South Korea, and this new deal marks a pivotal moment in bringing Polar Semiconductor back under US majority ownership.

The company specializes in producing silicon technologies down to 180nm, along with 750V IGBT and 40V to 100V MOSFETs. All active components meet AEC-Q100 requirements, while passive components meet AEC-Q200 requirements for automotive designs. Additionally, Polar Semiconductor offers high voltage BCD products with LDMOS up to 1200V, featuring various isolation schemes such as LOCOS, DTI, and JI. These products find applications in automotive, commercial, and industrial sectors.

To support its expansion plans, Polar Semiconductor has secured a substantial equity investment of $175 million from US investors Niobrara Capital and Prysm Capital. Furthermore, the company has received backing of $120 million under the CHIPS and Science Act, highlighting the government's commitment to bolstering the semiconductor industry in the country. In addition, the state government will provide $75 million to enhance the company's wafer capacity from 20,000 wafers per month to nearly 40,000 wafers per month over the next two years.

With the increased capacity, Polar Semiconductor aims to modernize its fab by incorporating new automation and AI capabilities. These enhancements will enable the company to better cater to customers in various sectors, including automotive, aerospace and defense, optoelectronics, MEMS, and medical devices. The strategic investments and upgrades reflect Polar Semiconductor's dedication to meeting the evolving demands of the semiconductor market in the US.

Commenting on the expansion, Surya Iyer, President and COO of Polar Semiconductor, expressed enthusiasm, stating, “We are very pleased to announce this historic investment in Minnesota semiconductor manufacturing. Our expanded manufacturing facility will allow us to increase capacity and branch into innovative technologies to serve new customers and markets.” The partnership with Niobrara Capital and Prysm Capital signifies a significant step towards advancing Polar Semiconductor's growth trajectory and solidifying its position in the US semiconductor industry.