Minnesota is a Leader in Semiconductor Production With 150 Manufacturers Across the State
March 6, 2025
Minnesota continues to grow as a hub for semiconductor manufacturing as existing companies expand in the region and more production firms move here. In May 2024, Polar Semiconductor in Bloomington announced a $525 million expansion project that would create 160 jobs. Semiconductor manufacturers in Minnesota have added 2,000 jobs within the past two years alone, marking this as a fast-growing industry in the state.
When you look at the map of semiconductor manufacturers across the country, Minneapolis is a clear hub. Along with semiconductors, there are equipment manufacturers, R&D partners, and materials developers across Northeast MSP, an area known as the Minnesota Technology Corridor.
Learn more about the continued investment in semiconductor technology and why this will have a positive impact on the Greater Metro Area of Minneapolis in the coming years.
Minneapolis is Bringing Semiconductor Production Back to the United States
In 2022, former President Biden announced the CHIPS and Science Act through the Commerce Department, which allocates $30 billion to the private sector to promote semiconductor production. The funds were spread across 23 projects in 15 states, including Minnesota.
Polar Semiconductor was the first recipient of the CHIPS and Science Act in the state. It received $120 million in direct federal funding and $75 million in state investment to support its $525 million expansion project.
The federal and state allocation came after 18 months of hard work by the Minnesota CHIPS Coalition, which brought together 20 semiconductor employers, educational partners, training programs, and government agencies. The Coalition stood out by developing a childcare program that would offer ample and affordable childcare in the region to support the semiconductor manufacturing workforce.
“The high quality of life in the Minneapolis/St. Paul metro area makes our region stand out,” says Chris Eng, Economic Development Director for the Washington County CDA. “We recognize that workers have personal lives and we want to create childcare opportunities, good schools, and recreational spaces where their families feel welcome.”
Semiconductors Aren’t New to Minneapolis
While the Minnesota Technology Corridor welcomes the CHIPS and Science Act investment, Minneapolis has long since led the country in semiconductor production. Don Ball, Director of Communications at GREATER MSP says semiconductor development is in our DNA. Semiconductor and supercomputer companies have picked Minneapolis as their headquarters since the 1960s.
“We’ve been at this a long time and have a concentration of institutional expertise to build upon,” he says.
Ball highlights the local talent base, which has more than sixty years of experience with semiconductors. Plenty of Minneapolis workers can guide and train the next generation of semiconductor manufacturers.
The local colleges and universities also have decades of experience developing education programs for local semiconductor companies, keeping the area flush with graduates in materials science and engineering, chemical engineering, and electrical engineering.
“We can’t speak highly enough about our local schools,” says Eng. “The K-12 schools do an excellent job of preparing students for college and career paths, while our higher education facilities are recognized on a national level.”
Semiconductor Manufacturing Attracts Partner Industries
Researchers have found a correlation between semiconductor manufacturing and other tech industries. When one region sees semiconductor investment, related businesses start to move to the area. Specifically, companies that create solar components and other green energy technology often relocate to areas with multiple semiconductor firms.
“If two industries historically concentrate in the same places, these industries must require similar local capabilities,” says Aaron Brickman and Ben Feshbach for RMI. “That’s what we’re seeing with recent manufacturing investment in solar and semiconductors: projects are clustering in many common places.”
RMI gave Minneapolis a 96% feasibility rating as a city best positioned to compete in solar manufacturing.
Brickman and Feshbach highlight workforce readiness as a key component of both semiconductor and solar investment. The skills of one industry tend to translate into another. The strong semiconductor industry in Minneapolis is setting it up to be a leader in future green tech investments, further diversifying the Minnesota Technology Corridor.
Discover a Tech Hub With a High Quality of Life
The Minnesota Technology Corridor continues to attract investors who want to further semiconductor manufacturing, green energy, medical technology, and even education technology. It is a diverse region of Greater MSP with highly educated professionals who have transferable skills.
Come see why more people continue to move to the Minneapolis metro area and how these residents make local technology industries thrive. The Minnesota Technology Corridor is a leader in semiconductor investment but also does so much more.
