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ST. PAUL, MN - Governor Tim Walz today announced $19 million from the State of Minnesota to support SkyWater Technology’s plan to expand its semiconductor manufacturing facility in Bloomington, which is expected to create approximately 70 new jobs. The total project cost is $127 million.
The Biden-Harris Administration also announced today that the U.S. Department of Commerce plans to provide up to $16 million in proposed direct funding under the CHIPS and Science Act.
“Minnesota remains an established leader in manufacturing innovation, an accomplishment made possible through investments in high-tech business expansion, education, and workforce training,” said Governor Walz.“Our consistent support of companies like SkyWater encourages the establishment and growth of high-tech companies that keep Minnesota on the cutting edge of the semiconductor industry. We’re grateful to the U.S. Commerce Department for its commitment to Minnesota’s future and its partnership with our state.”
Minnesota’s $19 million investment comes from the Minnesota Forward Fund, a Department of Employment and Economic Development (DEED) program Governor Walz signed into law last year to invest $400 million in business growth in Minnesota. It also provides matching funds for companies seeking federal resources like CHIPS Act funding. This is the Minnesota Forward Fund’s third award.
“Minnesota's semiconductor sector is strong and growing, making our state an important hub for domestic manufacturing of this important resource,” said DEED Commissioner Matt Varilek. “We are proud to partner with SkyWater Technology, the U.S. Commerce Department, and the City of Bloomington to keep Minnesota’s momentum going.”
“SkyWater is a vital part of the Bloomington high-tech ecosystem, and we are excited to see this critical investment in our community,” said Bloomington Mayor Tim Busse. “We have appreciated the leadership that SkyWater has demonstrated to move the industry forward and are grateful to the Department of Commerce and State of Minnesota for recognizing and supporting those efforts.”
SkyWater’s anticipated federal funding is the second in Minnesota from the 2022 U.S. CHIPS and Science Act, a $53 billion initiative by President Biden to grow U.S. semiconductor manufacturing, research and development, and workforce.
Part of SkyWater’s multi-year capital investment plan, this incremental funding would accelerate modernization and equipment upgrades to enhance production for customers in aerospace and defense as well as biomedical, industrial, thermal imaging, and quantum computing markets. The company’s investment would increase its U.S.-based semiconductor technology development and production capacity by 30% and create approximately 70 new jobs to support the workforce in Bloomington.
“We are pleased to receive this Minnesota Forward Fund award to expand our nation’s onshore capacity right here in Minnesota, and we’re proud of our role in helping to strengthen the U.S. supply chain for microelectronics,” said SkyWater CEO Thomas Sonderman. “As America’s Trusted Foundry, through our business model and expanding capabilities, we are creating a national asset for technology development, which is in a critical state domestically. We have been working to meet the specific needs of the Defense Industrial Base and commercial companies developing technologies of the future.”