Bloomington tech companies invest in their future

Two Bloomington tech companies are making major investments in their South Loop headquarters.

Sick, a German sensor technology manufacturer, marked its $64 million expansion May 22 outside its existing North American headquarters. The ceremony followed the May 13 announcement that Polar Semiconductor, a vehicle, appliance and industrial product semiconductor manufacturer, is investing $525 million in an expansion of its South Loop headquarters.

The Sick expansion will provide an additional 139,000 square feet on four floors, including research labs and office space. The project will include a seven-level parking ramp, according to the company’s announcement.

The parking ramp will also include public parking access, important for South Loop’s future development, Mayor Tim Busse noted in a 2023 summary of the Sick development plan.

The Sick expansion is supported in part by the city’s South Loop development fund, but does not include property tax revenue, Busse noted.

Sick’s multi-phase development plan is important for Bloomington’s diversity of its tax base, Busse added.

Sick has had a Minnesota presence since 1975 and moved its North American headquarters across the city in 2022, combining its West Bloomington headquarters with a production and logistics facility it operated in Savage.

The company also operates regional North America offices in Boston, Houston, Detroit, San Francisco, Toronto and Calgary.

The Sick announcement follows the previous week’s gathering in the South Loop District. Gov. Tim Walz, the U.S. Department of Commerce, state and regional economic development officials joined leaders from Polar Semiconductor in announcing its $525 million expansion.

The expansion will include $120 million in direct funding as part of the U.S. CHIPS and Science Act and a $75 million investment from the Minnesota Forward Fund, a state initiative to fuel business expansion.

The federal funding is the first award in Minnesota from the 2022 U.S. CHIPS and Science Act, a $53 billion initiative by President Joe Biden to grow U.S. semiconductor manufacturing, jobs and research and development.

Minnesota’s $75 million investment is the first award through the Minnesota Forward Fund, a new Department of Employment and Economic Development Walz signed into law last year to invest $400 million in business growth in Minnesota, according to an announcement by the city of Bloomington.

“As a top state for innovation in manufacturing, education and workforce training, Minnesota has an established reputation as a leader in the growing high-tech economy,” Walz said. “We have been consistent and creative in our support for companies like Polar Semiconductor that want to establish and grow their businesses here in Minnesota. We’re grateful to the Commerce Department for its commitment to Minnesota’s future and its partnership with our state.”

Polar produces high-voltage semiconductors for use in automotive, commercial and industrial applications at its 310,000-square-foot facility in Bloomington, employing 540 workers. The company produces around 20,000 wafer semiconductors per month. Polar’s expansion will allow the company to expand the facility, which could double its monthly output and lead to 160 new jobs, the city noted.