Taiwan’s United Microelectronics Corp. signed a preliminary agreement with Polar Semiconductor to explore producing older-generation chips at a Minnesota plant, as both companies seek to capitalize on growing demand for domestically manufactured semiconductors.
The memorandum of understanding, which remains nonbinding, would have Polar manufacture certain devices using UMC’s 8-inch wafer technology at its Bloomington facility. The deal contains no disclosed financial terms and represents exploratory talks rather than a firm commitment.
Polar completed a $525 million expansion of its Minnesota fab earlier this year, backed by $123 million in federal CHIPS Act funding—the first award under the program’s commercial facilities initiative. The company recently transitioned to majority U.S. ownership after investment from private equity firms Niobrara Capital and Prysm Capital.
For UMC, the world’s third-largest contract chipmaker behind TSMC and SMIC, the arrangement represents another step toward diversifying its geographic footprint outside Asia. The Hsinchu-based company already maintains a separate partnership with Intel to produce 12-nanometer chips in the U.S., with production slated to begin in 2027.
Eight-inch wafers typically serve mature applications in automotive, industrial, and power management—sectors that faced acute shortages during the pandemic supply crunch. UMC reported November revenue of NT$21.23 billion ($679 million), up 5.9% year-over-year.
The partnership’s success will depend on whether exploratory talks translate into binding production agreements and customer commitments.
