Founded in 2005, Polar Semiconductor (“Polar” or the “Company”) operates as an independent technology development, engineering, and manufacturing center specializing in silicon wafers. Based in Bloomington, Minnesota, Polar is a manufacturer of high voltage semiconductors (400-1,200 volts) used in automotive, commercial, and industrial applications.
The acquisition marks the conversion of Polar into a U.S.-owned merchant foundry, led by Niobrara Capital and Prysm Capital. Consistent with Niobrara’s strategic focus on technology and technology-enabled services, the investment underscores the firm’s commitment to reshoring critical supply chains and supporting middle-market companies benefitting from mega trends in the evolving technology landscape.
“Polar is doubling its production capacity to increase onshore wafer manufacturing, upgrading and modernizing its facility to become globally competitive through economies of scale, and delivering cutting-edge semiconductor solutions to the U.S. automotive, aerospace, defense, optoelectronics, MEMS, and medical device industries,” said Bill Krenz, President of Polar Semiconductor. “Through this effort, we are creating more than 160 new jobs, strengthening our commitment to our community, and driving economic growth in Minnesota.”
“Polar Semiconductor represents the type of transformational technology investment Niobrara was built to pursue,” said Chip Schorr, Founding Partner of Niobrara Capital. “With strong tailwinds from U.S. reshoring and critical industry demand, Polar is positioned to become a cornerstone of domestic semiconductor manufacturing.”
Polar’s $525 million investment plan is anchored by $175 million in equity financing from Niobrara Capital and Prysm Capital and is catalyzed by public-private partnerships, including up to $123 million in direct funding from the U.S. CHIPS and Science Act and $75 million from the Minnesota Forward Fund. Polar is the first award recipient under the CHIPS Incentives Program’s funding opportunity for commercial fabrication facilities and the Minnesota Forward Fund. The investment is expected to nearly double Polar’s wafer manufacturing capacity from ~20,000 to ~40,000 wafers per month, add advanced capabilities in compound semiconductors and sensors, and create more than 160 new jobs in the state.
About Niobrara Capital
Niobrara Capital is a middle-market private equity firm investing in technology and technology-enabled services across North America and Europe. Founded by pioneers in technology investing, Niobrara leverages nearly 30 years of experience in proprietary deal sourcing and value creation to partner with management teams and leading technology players. The firm targets companies benefitting from mega trends such as reshoring, digital transformation, and the disruption of traditional business models. For more information, please visit www.niobraracap.com.
About Polar Semiconductor
Polar Semiconductor, founded in 2005 and based in Bloomington, Minnesota, is an independent technology development, engineering, and manufacturing center for semiconductor wafers. Polar specializes in 200mm wafer fabrication for high-power applications, serving automotive, aerospace, defense, optoelectronics, MEMS, and medical device markets. The company is executing a $525 million investment plan to expand capacity, modernize its facility, and deliver advanced semiconductor solutions while strengthening the domestic supply chain. For more information, visit https://polarsemi.com.
