US Takes the Lead: $123 Million Boost for Polar Semiconductor as Historic Semiconductor Act Kicks In

First subsidy payment after enactment of the law in 2022
“A historic milestone in semiconductor law”

▲ U.S. Secretary of Commerce Gina Lamondo participates in an election campaign on the 29th of last month. Kentwood (U.S.)/AP Yonhap News

The United States has implemented the Semiconductor Support Act, enacted in 2022, for the first time.

According to Bloomberg News on the 24th (local time), the U.S. Department of Commerce announced that it has decided to provide subsidies to Polar Semiconductor in accordance with the Semiconductor Act.

The Department of Commerce, which signed a preliminary memorandum of understanding with Polar Semiconductor in May, made this final decision after due diligence and additional negotiations. The payment amount is known to be up to $123 million (approximately KRW 163.3 billion).

Polar Semiconductor, headquartered in Bloomington, Minnesota, makes semiconductors that go into everything from cars to air conditioners. The company said the subsidy would allow it to double its U.S. manufacturing within two years.

The United States previously enacted the Semiconductor Act to support subsidies, loans, and tax breaks to promote semiconductor manufacturing. The United States has currently allocated more than $35 billion in subsidies to support 26 places. This is the first time that subsidies have been confirmed for companies.

“Today marks a historic milestone in the implementation of the Semiconductor Act,” said Secretary of Commerce Gina Lamondo. “Pola Semiconductor’s facility will be modernized and expanded, strengthening our national security and creating quality jobs.”

“Today’s announcement that the Department of Commerce has finalized the first Semiconductor Act grants demonstrates how we are delivering on our ‘Investing in America’ agenda,” President Joe Biden said.