Polar Semiconductor was one of numerous companies to secure direct funding through the CHIPS and Science Act.
However, unlike its counterparts that received funding to construct new semiconductor fabs or advanced packaging facilities, the funding Polar Semiconductor received radically changed the company.
While the $120 million direct funding from the CHIPS Act is designed to expand Polar’s manufacturing facility and introduce new capabilities, additional funding from private and state sources transformed the company from a majority foreign-owned in-house manufacturer to a U.S.-owned commercial semiconductor foundry.
“We are the only pure-play U.S.-based foundry focused on power and sensors,” said Ken Obuszewski, VP of marketing at Polar Semiconductor. “The other power foundries—Vanguard, PSMC, XFab—are not in the U.S. With the funding we are getting from CHIPS Act and private equity firms we are doubling our capacity and bringing on new customers.”
Private equity and expansion
Originally, Polar Semiconductor was co-owned by Sanken Electric Co., Ltd. with a 70% stake and Allegro MicroSystems, Inc. with a 30% stake, and manufactured BCD integrated circuits and discrete devices such as IGBTs and MOSFETs.
In September of 2024, U.S. private equity firms Niobrara Capital and Prysm Capital took a majority stake in Polar with Sanken and Allegro retaining minority stakes and maintaining their relationship to receive power semiconductors from the foundry.
Through private and government investment, Polar will be able to double its sensor and power chip capacity in the next two years, Obuszewski said. It will also open new opportunities for chip designers to produce power semiconductors domestically.
Investing in GaN
Earlier in 2025, the world’s largest chipmaker and pure-play foundry TSMC said it will exit the gallium nitride (GaN) foundry business.
The news that TSMC would no longer manufacture GaN has allowed other foundries to ramp up their support in anticipation of receiving additional business.
GaN is mostly used for automotive and smartphone chargers, industrial robots, solar inverters, data centers and more.
Enter Polar Semiconductor that in April of 2025 made a strategic agreement with Renesas to fabricate 650 V class GaN-on-Si devices for Renesas and others in its 200 mm automotive-qualified manufacturing facility in Minnesota.
“GaN is a tricky technology and Renesas has motivation to run 8-inch wafers,” Obuszewski said. “There is some momentum in GaN and it is a natural extension with our power expertise. With Renesas as a partner we are excited to bring that on board and bring it to production.”
Obuszewski said the companies are currently transferring Renesas’ 6-inch GaN process and will later ramp up its 8-inch process to run Renesas wafers in the fab. Polar will use the license to also manufacture products for other customers.
GaN production is slated to begin at the end of 2026.
An engineer inside a Polar Semiconductor's 200 mm Minnesota fab. The company will be expanding its capacity and will be introducing new capabilities in the next few years. Source: Polar Semiconductor
BCD ramp up
But GaN is not the only new technology Polar is exploring. The company in January of 2025 signed a licensing agreement with Israeli foundry Tower Semiconductor to allow domestic production of Tower’s 180 nm TS18 power management process.
Under the deal, Polar will become the only U.S.-based foundry capable of high-voltage power bipolar-CMOS-DMOS (BCD) semiconductor wafer production for aerospace, defense and commercial end markets.
Obuszewski said some of Tower’s customers want to use a U.S.-based foundry for the BCD technology and the deal will allow it to reach other customers as the U.S. pushes to renew its domestic semiconductor manufacturing.
Secure supply chain
The idea of bringing semiconductor manufacturing back domestically to the U.S. has been a topic of discussion for decades but until COVID-19 impacted the entire supply chain, no movement was made in that direction.
The U.S. government started the investment in semiconductor manufacturing and reshoring by passing the CHIPS Act in 2022.
Management of these investments continues under the Commerce Department with new agreements for chip manufacturing on the construction of new fabs and technology facilities.
“TSMC is the gold standard in chip manufacturing, and they have earned that designation,” Obuszewski said. “But being so reliant of Taiwan and China is too risky for the U.S. as semiconductors are the technology engine for everything. For the U.S. to lose focus on this would be a mistake for our country and we need to invest in chip manufacturing.”
Obuszewski added the biggest driving factor to secure domestic semiconductor supply is the geopolitical uncertainty happening in the world. The accelerated trade war with China, the ongoing war in Ukraine, the impact of tariffs and the threats to Taiwan are all reinforcing the need for a domestic supply of semiconductors, he said.
The next steps
In the next few years, Polar plans to focus on bringing GaN and BCD technologies to operation and expanding the working space in the fab. That will double the capacity of Polar.
By 2028, Polar plans to have its fab filled and expand its customer base with diversified users. It will also expand capacity even further, Obuszewski said.
“Our technology roadmap aligns with this rollout of capacity as well as our GaN and BCD introductions,” he said.
