ST. PAUL — Gov. Tim Walz on Friday, Dec. 6, announced $19 million from the state of Minnesota, alongside up to $16 million in proposed direct funding from the U.S. Department of Commerce under the CHIPS and Science Act, to support SkyWater’s semiconductor manufacturing facility in Bloomington.
SkyWater, based in Bloomington and set to focus on semiconductor production, is expected to create approximately 70 new jobs and reach a total cost of $127 million for SkyWater’s launch, according to a Friday press release.
The funding announced Friday is the third allocation from the Minnesota Forward Fund, a Department of Employment and Economic Development program Walz signed into law in 2024 to invest $400 million in business growth in Minnesota.
The Minnesota Forward Fund provides “match” funding to businesses like SkyWater that received federal dollars, helping Minnesota businesses leverage funding from initiatives like the CHIPS and Science Act. SkyWater’s project is the second in Minnesota to receive federal funding from the 2022 U.S. CHIPS and Science Act, a $53 billion initiative by President Joe Biden to grow U.S. semiconductor manufacturing, research, development and workforce.
“Minnesota remains an established leader in manufacturing innovation, an accomplishment made possible through investments in high-tech business expansion, education, and workforce training,” Walz said in the release. “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.”
Semiconductors are “building blocks” of circuits in computers, cellphones, electronic vehicles, satellite systems and solar panels, among many other products. The U.S. leads the world in production of semiconductors, according to the World Population Review.
SkyWater’s investment is intended to increase U.S.-based semiconductor technology development and production capacity by 30%. SkyWater’s multi-year capital investment plan aims to enhance production for customers in aerospace and defense, as well as biomedical, industrial, thermal imaging and quantum computing markets, according to the release.
“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,” SkyWater CEO Thomas Sonderman said in the release. “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.”
Mary Murphy joined Forum Communications in October 2024 as the Minnesota State Correspondent. She can be reached by email at mmurphy@forumcomm.com.