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.

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,