Polar Semiconductor, a subsidiary of Allegro Microsystems (ALGM.US), received $123 million in funding under the CHIPS Act, up nearly 2% before the market opened!

The U.S. Commerce Department announced on Tuesday that Polar Semiconductor, a Minnesota company owned by Allegro Microsystems (ALGM.US) and Sankei Electric, will be the latest recipient of funding under the Chips for America Act. Polar Semiconductor will receive $123 million to expand its factory in Minnesota and significantly increase its ability to produce power and sensor chips.U.S. Commerce Secretary Gina Raimondo highlighted the first contract signed with Polar as a significant milestone in the implementation of the Chips and Science Act, and believes the Biden-Harris administration's investment in Polar will create new American-owned fabs and modernize and expand the factory in Minnesota, which will help strengthen national and economic security, strengthen supply chains, and create more high-quality jobs. Allegro Microsystems, which owns 30% of Polar, saw its stock rise nearly 2% in premarket trading on Tuesday.National Economic Council advisor Lael Brainard noted that the announcement from Polar foreshadowed more awards for communities across the country to support the U.S. regaining its leadership in semiconductor manufacturing. The Commerce Department also added that Polar has already received a total of $525 million in private, federal, and state government funding to transform from a foreign-controlled in-house manufacturer to a U.S.-controlled commercial fab.The Chips and Science Act, a $52.7 billion bill, was passed in August 2022. Since its enactment, more than $35 billion has been allocated to several companies, including Intel (INTC.US), GlobalFoundries (GFS.US), and TSMC (TSM.US), among others, who received funding in March and September.