Tuesday, September 24, 2024 2:45 PM
Semiconductor Industry Association
WASHINGTON—September 24, 2024—The Semiconductor Industry Association (SIA) today released the following statement from SIA Chairman and CEO John Neufer, applauding the first final agreement on the allocation of incentives under the CHIPS and SCIENCE Act: The agreement between Polar Semiconductor and the U.S. Department of Commerce will support Polar’s expansion of chip manufacturing capacity in Minnesota.
The Commerce Department previously announced preliminary incentive agreements for a variety of companies and projects that will help strengthen the U.S. semiconductor supply chain.
“We commend Polar Semiconductor and the U.S. Department of Commerce for working diligently to conclude this agreement, which marks an important milestone in the implementation of the historic CHIPS and SCIENCE Act. We are encouraged by the progress made in redirecting critical CHIPS grant funding to projects that will advance U.S.-based semiconductor production and innovation, and hope that today’s final grant awards will be the first of many to come in the coming weeks and months. We look forward to continuing to work with industry and government leaders to ensure that the CHIPS Act provides the greatest benefit to our U.S. economy and national security.”
As announced in May, incentives associated with the agreement will enable Polar to double its U.S. manufacturing capacity for sensor and power chips within two years to serve diverse market segments. As part of the announcement, Polar Semiconductor will also transition to a majority U.S.-owned commercial foundry.
The CHIPS Act’s manufacturing incentives have spurred significant announced investments in the U.S. In fact, companies in the semiconductor ecosystem have announced more than 90 new projects across 28 U.S. states since the introduction of the CHIPS Act, totaling hundreds of billions of dollars in private investment. These announced projects will create more than 58,000 jobs in the semiconductor ecosystem and hundreds of thousands of new jobs across the U.S. economy.
A SIA-Boston Consulting Group report released in May projects that U.S. domestic semiconductor manufacturing capacity will triple between 2022, when CHIPS goes into effect, and 2032. The projected 203% growth rate is the largest projected increase in the world over that period. The report also projects that the U.S. will account for more than a quarter (28%) of the world’s total capital expenditures (CAPEX) from 2024 to 2032.
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About SIA
The Semiconductor Industry Association (SIA) is the voice of the semiconductor industry, one of America’s leading 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. semiconductor companies. Through this coalition, SIA seeks to advance semiconductor manufacturing, design, and research leadership by working with Congress, the Administration, and key industry stakeholders around the world to advance policies that foster innovation, drive business, and enhance global competition. For more information, visit www.semiconductors.org.
