According to the Wise Finance APP, the US Department of Commerce announced on Tuesday that Polar Semiconductor, a company in Minnesota jointly owned by Allegro Microsystems (ALGM.US) and Three-kin Electric, will be the latest recipient of funding under the "Chip Investment Act." Polar Semiconductor will receive $0.123 billion in funding to expand its factory in Minnesota and significantly enhance its capabilities in producing power and sensor chips.

US Secretary of Commerce Gina Raimondo emphasized that the first contract signed with Polar is an important milestone in the implementation of the "Chip and Science Act." She believes that the investment by the Biden-Harris administration in Polar will create new US-owned foundries and modernize and expand the factory in Minnesota, which will help strengthen national and economic security, enhance the supply chain, and create more high-quality job opportunities. Allegro Microsystems owns 30% of Polar's shares, and its stock price rose nearly 2% in pre-market trading on Tuesday.

National Economic Advisor Lael Brainard mentioned that the announcement by Polar signals that communities nationwide will receive more awards to support the USA in reclaiming a leading position in the semiconductor manufacturing industry. In addition, the US Department of Commerce also added that Polar has received a total of $0.525 billion in private, federal, and state government funding to transition from a foreign-controlled internal manufacturer to a US-controlled commercial foundry.

The "Chip and Science Act" is a $52.7 billion act passed in August 2022. Since its enactment, over $35 billion has been allocated to multiple companies. Several enterprises, including intel (INTC.US), GlobalFoundries (GFS.US), Taiwan Semiconductor (TSM.US), among others, received funding in March and September.