The U.S. Commerce Department said on Tuesday it had finalized a $123 million grant for Polar Semiconductor to expand its plant in Minnesota, which would allow the company to nearly double its U.S. production capacity of power and sensor chips.

The Biden administration has finalized its first binding award under the Chips and Science Act: a $123 million grant to Polar Semiconductor that officials say could double the company’s US manufacturing capacity within two years.

Minnow of among government funded whales to double production capacity US-based Polar Semiconductor – the maker of analog and power chip devices and sensors – has bagged $123 million of CHIPS and Science Act funding to nearly double production capacity in the US.

Minnesota-based Polar Semiconductor, which is jointly owned by Allegro Microsystems (NASDAQ:ALGM) and Sanken Electric, is the latest company to receive funds from the CHIPs Act, the Commerce Department said on Tuesday.

The US Department of Commerce has approved a $123 million grant to Polar Semiconductor, enabling the company to significantly expand its chip manufacturing facility in Minnesota. This expansion will almost double its production capacity for power and sensor chips,