Another Bloomington chip factory expands to meet smart TV, data center demands

June 27, 2026 - 04:27

Seagate Technology is moving forward with a major expansion of its manufacturing facility in Bloomington, adding 64,500 square feet of new space along the Interstate 494 corridor. The project follows recent expansions by other local chip makers, including Polar Semiconductor and SkyWater Technology, as demand for semiconductors continues to surge.

The company's decision comes as the global appetite for smart televisions, cloud computing infrastructure, and data center hardware shows no sign of slowing down. Industry analysts point to the rise of artificial intelligence and streaming services as key drivers behind the need for more advanced memory and storage chips.

Construction is expected to begin in the coming months, with the new space designed to increase production capacity and accommodate next-generation equipment. Seagate has not disclosed the exact cost of the project, but officials say it will create dozens of new jobs in engineering, manufacturing, and logistics.

The Bloomington site has long been a cornerstone of Seagate's operations in the Midwest. With this latest expansion, the company aims to shorten supply chains and reduce reliance on overseas fabrication plants. Local economic development leaders have welcomed the move, calling it a vote of confidence in the region's skilled workforce and business climate.

The expansion is part of a broader trend across Minnesota's tech sector, where established firms and startups alike are racing to meet chip demand. While the industry faces ongoing challenges with raw material costs and global competition, Seagate's investment signals a long-term bet on domestic production.