Department of Commerce announces preliminary terms with SkyWater Technologies, solidifying Minnesota’s leadership in U.S. semiconductor industry
Saint Paul, Minn. – The Biden-Harris Administration has announced that the U.S. Department of Commerce signed a preliminary memoranda of terms (PMT) under the CHIPS and Science Act to provide up to $16 million in proposed direct funding to SkyWater Technology Foundry, Inc. The funding aims to modernize its facility located in Bloomington, Minnesota.
This announcement marks a significant milestone for the Minnesota CHIPS Coalition, being the second major investment in a Minnesota-based semiconductor manufacturer, following the earlier announcement of $525 million for Polar Semiconductor in May.
The bipartisan 2022 CHIPS Act aims to reinvigorate semiconductor manufacturing across the United States by investing $50 billion to boost production of advanced semiconductors. These semiconductors are essential components in many electronic devices, from mobile phones and computers to electric vehicles and defense systems, while also enhancing America’s semiconductor research and development efforts.
“We built the Minnesota CHIPS Coalition to help Minnesota semiconductor companies win federal CHIPS funding and secure our region’s role as a national leader in this strategic global industry,” stated Peter Frosch, president and CEO of the GREATER MSP Partnership. “This announcement demonstrates that Minnesota’s collaborative approach – uniting industry, academia, and government – is creating more jobs and accelerating our region’s innovation economy.”
Latest win for the Minnesota CHIPS Coalition
This landmark investment in SkyWater Technology showcases another significant victory for the Minnesota CHIPS Coalition. Formed by GREATER MSP Partnership in late 2022 following the enactment of the federal CHIPS and Science Act, the coalition consists of over 70 organizations, including manufacturers, supply-chain partners, educational providers, labor organizations, and governmental entities. Together, they aim to enhance Minnesota’s already robust semiconductor and microelectronics sector.
Collaborations within the Minnesota CHIPS Coalition highlight the strength and global significance of the Minneapolis-Saint Paul regional economy. “Our region is collaborating at scale to address some of our most significant national and global challenges,” Frosch added. “This includes renewing the competitiveness of America’s semiconductor industry and ensuring economic security while creating good jobs. Our ability to develop collaborative solutions serves as a competitive advantage that makes us the problem-solving capital of the new economy.”
SkyWater’s success affirms the Minnesota CHIPS Coalition’s diligent efforts over the past two years, including the establishment of a workforce partnership. This initiative consists of over 20 microelectronics employers, along with educational institutions, training providers, and government agencies working to expand the talent pool in Minnesota’s semiconductor and microelectronics fields. The partnership convenes regularly to foster collaboration among these groups, complemented by crucial funding from the Minnesota Department of Employment and Economic Development (DEED) through initiatives like Drive for 5 and the Minnesota Job Skills Partnership.
Bold vision for Minnesota’s semiconductor industry
The Minnesota CHIPS Coalition has set its sights on positioning Minnesota among the top 10 leaders in semiconductor learning, development, and manufacturing, with plans to create an additional 10,000 jobs in this vital industry that ensures national and economic security.
The coalition’s successful advocacy prompted the state legislature to pass the Minnesota Forward Fund during the 2023 session, which includes dedicated state-matching funds for federal CHIPS awards. This support from both federal and state agencies enhances Greater MSP’s capacity to drive economic growth, foster technological innovation, and promote inclusive job development.
“Federal investments like this are crucial for the growth of our regional and state economy, advancing technology development and building prosperity for all Minnesotans,” Frosch emphasized. “Thanks to the dedicated state-matching funds from the Minnesota Forward Fund, our region’s semiconductor industry is scaling.”
Conclusion
The collaboration and commitment displayed by various organizations through the Minnesota CHIPS Coalition exemplify a strong collective effort to uphold Minnesota’s leadership in the semiconductor industry. As investments continue to flow into this critical sector, the future appears bright for innovation, job creation, and economic stability in the region.
