United Microelectronics Corporation (UMC) and Polar Semiconductor announced a Memorandum of Understanding to explore a joint effort on scalable 8‑inch wafer production in the United States. The agreement, signed on December 4 2025, will leverage Polar’s newly expanded 8‑inch facility in Bloomington, Minnesota, and UMC’s broad 8‑inch technology portfolio to strengthen domestic supply of power semiconductors for automotive, electric‑grid, robotic‑manufacturing, data‑center, and aerospace & defense customers.
Polar’s Bloomington plant has doubled its production capacity from roughly 20,000 to 40,000 wafer starts per month over the next two years, a growth underpinned by up to $123 million in CHIPS and Science Act funding and additional private and state investments. The facility’s expansion is part of Polar’s transition to a majority U.S.‑owned commercial foundry, supported by investments from Niobrara Capital and Prysm Capital. UMC, which currently has no chip‑manufacturing operations in the United States, will bring its advanced 8‑inch process technologies to the partnership.
The collaboration is designed to meet the rising demand for power and sensor semiconductors in key U.S. industries while enhancing supply‑chain resilience amid geopolitical tensions. By combining Polar’s proven manufacturing capabilities with UMC’s technology breadth, the two companies aim to secure a domestic supply chain for critical power‑chip applications and support customers’ multi‑sourcing strategies.
From a market perspective, the MOU positions UMC to capture growth in the U.S. power‑semiconductor market, which is expanding due to electric‑vehicle adoption, industrial automation, and defense modernization. The partnership also aligns with the U.S. government’s CHIPS Act objectives, which provide substantial federal funding to boost domestic semiconductor manufacturing and reduce reliance on foreign supply chains.
Management comments underscore the strategic fit: Ken Obuszewski, Vice President of Marketing at Polar, said the partnership “aligns with Polar’s strategy to meet the growing demand for domestic manufacturing and demonstrates our capability to be a value‑added silicon foundry in specialized technologies.” Oliver Chang, Senior Vice President of Global Sales at UMC, added that the collaboration “directly addresses our customers’ needs for more made‑in‑USA chips, reflecting UMC’s dedication to delivering value through innovative solutions and mutually beneficial partnerships.”
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